This Action was commenced in 2001 in the Ontario Superior Court of Justice. The Class and Class Members seek damages to compensate Class Members for money allegedly lost as a result of an arrangement in which their retirement savings were used to purchase shares in one or more of the following CCPCs: Atlas McKenzie Inc., Data Safenet Inc., Distribution Perliandaise Inc., Eau-Necessaire Inc., Eurontario Inc., Flash VDO PC Inc., Generatrices 2000 Plus Inc., LMN Techno-Soft Inc., Logiciels St. Malo Inc., Mainmont, NAV et LOG-CIEL Inc., Sylkon Securities Inc., Vilcorp, Edimax Technologie Inc., Inter Technologie Inc., Intermax Technologie Inc., Via Net Tech Inc. CL-B, or Vox Technologie Inc.
The Settled Defendant Dundee and the Settling Defendant, Canadian Western Trust Company (“CWT”) have denied and continue to deny any liability to the Class. CWT is not alleged to have been an active participant in any wrongdoing. The Class Action has been vigorously contested.
TopIf you were a client of investment advisor Brian Verbeek (“Verbeek”) who transferred funds from your Registered Retirement Plan to Canadian Western Trust Company (“CWT”) to purchase shares in one or more of the following Canadian Controlled Private Corporations (“CCPCS”), which shares then were held in a CWT account, and you have not opted out of this lawsuit, you are a member of the CWT Subclass.
Canadian Controlled Private Corporations (“CCPCs”): Atlas McKenzie Inc., Data Safenet Inc., Distribution Perilandaise Inc., Eau-Necessarie Inc., Eurontario Inc., Flash VDO PC Inc., Generatrices 2000 Plus Inc., LMN Techno-Soft Inc., Logicels St. Malo Inc., Mainmont, NAV et LOGI-CIEL Inc., Silkon Securities Inc., Vilcorp, Edimax Technologie Inc., Inter Technologie Inc., Intermax Technologie Inc., Via Net Tech In. CL-B, or Vox Technologie Inc,
For the purpose of the notice, “Registered Retirement Plans” include Locked-in Retirement Accounts, Life Income Funds, Registered Retirement Income Funds, and locked-in Registered Retirement Savings Plans.
In order to be eligible for compensation you must:
On December 21, 2022, the Plaintiffs entered into a Settlement Agreement with CWT. A copy of the Settlement Agreement can be viewed under the Documents tab on this website.
Pursuant to the Settlement Agreement, CWT has agreed, as part of the settlement, to pay to or for the benefit of the CWT Subclass the total sum of $515,000.00.
The Settlement is a compromise of disputed claims and is not an admission of liability, wrongdoing or fault on the part of CWT.
On February 7, 2022, the Court approved the settlement and declared that it is fair, reasonable, and in the best interests of the CWT Subclass.
In return for its payment of $515,000.00, CWT and other Releasees received releases, and the Class Action and any related claims has been dismissed against them.
The Class Action arises out of an alleged Registered Retirement Plan arrangement. As such, CWT Subclass members who participate in the settlement may face tax consequences, for which each CWT Subclass member will be responsible. If you have questions regarding how the settlement may impact you, please speak to your tax lawyer or your accountant.
TopIn order to be eligible for compensation you must:
The Court has appointed RicePoint Administration Inc. as the Claims Administrator of the Settlement. The Claims Administrator will oversee the claim and will distribute the Distribution Fund to members of the CWT Subclass who submit a valid Claim Form.
The Settlement Administrator will determine what proportion of the Distribution Fund, if any, you are entitled to receive, based on records of any losses claimed to have been suffered.
Claim Forms will be mailed to all members of the CWT Subclass for whom Class Counsel have current contact information. Claim Forms will also be available by contacting the Claims Administrator or visiting the Documents tab of this website.
Members of the CWT Subclass who wish to receive compensation from the Distribution Fund must mail a signed and completed Claim Form to the Administrator no later than July 20, 2023 (the “Claim Deadline”).
Members of the CWT Subclass who send a valid Claim Form to the Administrator, postmarked to the Claim Deadline, will be paid a pro rata share of the Distribution Fund, following deduction of all fees, expenses, and taxes. The Distribution Protocol posted on Class Counsel’s website contains an explanation of how the Distribution Fund will be distributed to the CWT Subclass members or their Registered Retirement Plans.
The Settlement Agreement, the Settlement Approval Order, the Distribution Protocol and Claim Forms, as well as other information regarding the Class Action are available on Class Counsel’s website at: www.moodiemair.com.
These documents are also available under the Documents tab on this website.
TopPlease reach out to the Claims Administrator for assistance by phoning 1-855-661-0387 if you do not have your purchases and loan totals readily available. The Claims Administrator has data from the Plaintiffs and the Defendants that provides this information; please note that this reflects Plaintiffs’ and Defendants’ records and has not been verified by the Claims Administrator.
TopIf you are eligible to receive payment you must choose one of two payment options as set out in Section D of the Claim Form:
1. Direct Payment by cheque
This option will be subject to an amount that will be withheld by the Claims Administrator on account of taxes that must be remitted to the Canada Revenue Agency (CRA). You will be issued a T4 tax slip for your records indicating the amount that was remitted to CRA. You must provide your social insurance number to the Claims Administrator so that they can make the necessary remittances to CRA.
2. Direct deposit into your RRSP Account.
If you elect to have payment deposited into your existing RRSP Account or other registered account at another Canadian financial institution, you are solely responsible for ensuring that you are entitled to deposit the payment into your registered account pursuant to applicable income tax laws and regulations, and you may be asked by the Claims Administrator to provide documentation to verify this entitlement. Beauregard and the Releasees have no responsibility to confirm that you are entitled to deposit your payment into your registered account. If you choose this option the Claims Administrator will issue a cheque to your designated financial adviser to be deposited into your existing RRSP account.
The deadline to submit a claim is July 20, 2023.
TopSubmit your completed and signed Claim Form postmarked on or before July 20, 2023 addressed to the Claims Administrator:
BCWQ Class Action Claims Administrator
P.O. Box 3355
London, ON N6A 4K3
The Court also awarded Class Counsel legal fees, expenses and applicable taxes in the total amount of $119,073.75, based upon $105,375.00 (“Class Counsel Fees”). As is customary in these cases, Class Counsel conducted the Class Action on a Contingency Fee Retainer, meaning that Class Counsel were not paid as the matter proceeded. Class Counsel Fees will be deducted from the Settlement Amount before it is distributed to members of the CWT Subclass. The net remainder of the Settlement Amount following the deduction of Class Counsel Fees will be the “Distribution Fund”. Class Counsel will not seek additional payment for its future time spent or expenses incurred in the proceeding against CWT or any of the Releasees.
The Class Proceedings Fund provided some funding for the Class Action, as well as indemnification in the event of any adverse costs awards. As such, the Court also ordered that the Class Proceedings Fund will be paid $45,492.62 from the Distribution Fund.
TopAccurate claims processing takes a significant amount of time. We thank you for your patience and will provide more specific updates as we approach class member distribution.
TopMore details are in the settlement agreement. You can get a copy of the agreement on this website under the Documents tab. You can reach out to our support center toll-free at 1-855-661-0387.
Top