Jan 3, 2018
An article in The Globe and Mail looks at a recent lawsuit launched by two investors who have sued Home Capital Group Inc. and three of its former executives for $2 million, “alleging negligent behaviour, untimely disclosures and public misrepresentations.” According to the article, it is the second lawsuit from shareholders who opted out of Home Capital's $29.5-million class action settlement to resolve a previous scandal that involved falsified loan applications. To gain insight into the lawsuit, author Rachelle Younglai turns to Craig Lockwood, a partner in Osler’s Litigation Practice Group.
"Oftentimes, big players, if they are not part of the settling group, opt out if they think they have a better shot on their own and they will take a run at it," says Craig. "You are looking at a five-year investment, say, as opposed to an immediate payout. You really have to have a very strong case with some serious dollars at the end of it."
For more information, read Rachelle Younglai’s full article “Investors launch $2-million suit against Home Capital, three former executives.”