Gammon Gold Inc.
In March 2008, Siskinds LLP filed a class action against Gammon Gold Inc. ("Gammon") and certain of its current and former officers and directors. The class action arises out of Gammon's April 2007 offering to the public of 10 million Gammon shares at a price of $20 per share. The offering was conducted pursuant to a prospectus issued by the defendants on April 19, 2007. Also named as defendants are the three underwriters who sold those shares to the public: BMO Nesbitt Burns, Inc., Scotia Capital Inc. and TD Securities Inc.
In the original Statement of Claim, it is alleged that the defendants made various misrepresentations in the Prospectus relating to the production of gold equivalent ounces at Gammon's principal mining property, Ocampo. It is also alleged that Gammon's stock options were manipulated in years prior to 2007 and that, in the Prospectus, the defendants misrepresented the amount of Gammon's stock option expense during certain of those years, and also misrepresented the adequacy of Gammon's internal controls. On July 11, 2008, Siskinds LLP filed an amended statement of claim and expanded the action to include all investors who acquired securities of Gammon Gold during the period October 10, 2006 to August 10, 2007.
On March 16, 2010, the Ontario Superior Court of Justice certified the proceeding as a class action. The Court found, however, that the Plaintiff's statement of claim did not disclose a cause of action in fraudulent misrepresentation and adjourned the motion for certification of the conspiracy claim until the Plaintiff delivered particulars of his special damages. The Court further declined to certify any part of the claim on behalf of the secondary market purchasers (i.e. persons who purchased Gammon shares on the TSX or the AMEX), declined to certify any common law misrepresentation claim and declined to certify a global class. The Class was limited to persons who purchased Gammon shares from the Underwriters in Canada. The Plaintiff sought leave to appeal these findings, but was only granted leave to appeal the certification of the conspiracy claims.
The Parties argued the appeal motion on June 27, 2011, the Judge found that the determination of the common issue as it relates to the conspiracy claim on behalf of the primary market purchasers and the issue of certification of the conspiracy claim as it relates to secondary market purchasers be returned to the motions judge, Justice Strathy, for determination. On October 11, 2011 and January 10, 2012, the Parties appeared before Justice Strathy. Justice Strathy has now ruled that the class definition be amended to include all persons and entities, other than Excluded Persons, who acquired securities of Gammon Gold during the period from October 10, 2006 to August 10, 2007. Justice Strathy further ruled that the cause of action in conspiracy was certified on behalf of the Class. The Defendants have sought leave to appeal the findings of Justice Strathy.
If you purchased Gammon shares under Gammon's April 2007 Prospectus, or if you acquired Gammon securities over the Toronto Stock Exchange or AMEX Stock Exchange in the United States during the period from and including october 10, 2006 to and including August 10, 2007, please complete the online information form. Your information will be held in strict confidence. By completing the form, you are not retaining Siskinds, nor do you incur any obligations in connection with this lawsuit. For further information concerning this action, please contact Nicole Young at 1 (800) 461-6166 ext. 2380 or e-mail Nicole by clicking on the Contact Us link below. Updates concerning this action will be posted above.