AUTHORIZATION AND PROPOSED SETTLEMENT OF
THE STARS GROUP INC. (FORMERLY AMAYA) SECURITIES CLASS ACTION
Court File No. 500-06-000785-168,
On March 24, 2016, a proposed class action was commenced against The Stars Group Inc. (“TSGI”) and others in the Superior Court of Québec (“Class Action”). The authorized common issue in the class action is: Did the Defendants make misrepresentations and omissions of material fact in TSGI’s public filings and statements regarding its business practices?
The class action was brought on behalf of all persons and entities, excluding certain persons associated with the Defendants, who acquired securities of THE STARS GROUP INC. between March 31, 2014 to March 22, 2016 (the “Class Period”) and held all or some of those acquired TSGI securities until after March 22, 2016. You are a member of the class action if you meet this description.
The Class is defined as:
- “Primary Market Sub-Class”: all persons and entities, wherever they may reside or may be domiciled, other than Excluded Persons, who, during the Class Period, purchased TSGI’s securities in an Offering and held all or some of those securities until at least March 23, 2016;
- “Secondary Market Sub-Class”: all persons and entities, wherever they may reside or may be domiciled, other than Excluded Persons, who, during the Class Period, purchased TSG’s securities in the secondary market and held all or some of those securities until at least March 23, 2016, and who:
- are residents in Canada or were residents in Canada at the time of such acquisitions regardless of the location of the exchange on which they acquired TSGI's securities; or
- acquired TSGI's securities in the secondary market in Canada or elsewhere, other than in the United States.
The class action asserts that TSGI made misrepresentations and omissions of material fact in TSGI’s public filings and statements regarding its business practices. It is alleged that when the misrepresentations and omissions of fact were publicly corrected, TSGI’s securities dropped significantly in value causing the class members damages.
The parties have reached a proposed settlement (“Agreement”) without any admission of liability on the part of the Defendants, subject to the approval by the Superior Court. The Defendants have denied and continue to deny each and all of the claims and allegations of wrongdoing made by the Plaintiff in the Class Action.
THE TERMS OF THE PROPOSED SETTLEMENT
An amount of CDN $30 million will be paid (“Settlement Amount”), which shall definitively and permanently resolve, settle and release and discharge all claims asserted, or which could have been asserted, against the Defendants by the Plaintiff on his own behalf and/or on behalf of the Class.
The settlement for the Class, less the lawyers’ fees and disbursements, administrator’s expenses, and taxes, if approved by the Court, will be distributed to the Class on a pro rata basis. Distributions to Québec Class Members will be subject to the levy for the "Fonds d’aide aux actions collectives".
The Settlement Agreement is available in PDF format in the documents section of this website.
Settlement Amount means $30,000,000CDN dollars, inclusive of capital, interest, additional indemnity, Administration Expenses, Class Counsel Fees, taxes and any other costs or expenses related to the Action or the Agreement, $29,980,000CDN of which will be paid to settle the Class claims and $20,000 of which will be paid to the Plaintiff to settle his individual QSA claim.
The Settlement Amount will be distributed in accordance with the formula contained in the Plan of Allocation to be approved by the Court. The Plan of Allocation will apportion $2,500,000CDN to Authorized Claimants who purchased their securities in the primary market and the remaining $27,480,000CDN to Authorized Claimants who purchased their securities in the secondary market.
Claim Forms and instructions on how to file a Claim will be available upon the dissemination of the Settlement Notice and within this website, subject to Court approval.
If there is a conflict between the wording of this website, the claims administration portal, the Opt-Out Form, provisions of the Notice (abbreviated, short-form and long-form Notices) and the Settlement Agreement or Plan of Allocation, the terms of the Settlement Agreement and/or the Plan of Allocation, as applicable, shall prevail.