TVI Pacific enters into agreement to settle previously filed class actions

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[{"type":"text","content":"\n\n\n\n(TSX: TVI)\n\n\nCALGARY, April 22 /CNW/ - TVI Pacific Inc. ("TVI" or the "Company")\nannounced today that it has entered into an agreement to settle all claims\nassociated with class-action proceedings commenced in Ontario by Joe\nMarcantonio and in Quebec by Florent Audette. The Settlement Agreement, which\nis subject to court approval, has also been signed on behalf of the other\ndefendants in those actions, being the directors and a former officer of the\nCompany.\n\n\nOn March 3, 2008, a statement of claim was issued (under the Class\nProceedings Act, 1992) in the Ontario Superior Court of Justice against TVI,\nits directors and a former senior officer of the Company by Florent Audette,\nwho was described in the claim as a shareholder of TVI. On April 10, 2008, a\ndifferent plaintiff, Joe Marcantonio, was substituted as the representative\nplaintiff in the Ontario action. A further proposed class proceeding was\ncommenced in the Superior Court of Quebec by Florent Audette on July 25, 2008,\nwhich was virtually identical to the Ontario claim. In both claims, the\nplaintiffs alleged that TVI made misrepresentations in financial statements\nthat were restated in 2007. The plaintiffs also alleged impropriety in\nrelation to the Company's historical share option granting practices. In their\naction, the plaintiffs sought, among other things, damages in the amount of\n$16 million (consisting of general and special damages of $15 million and\npunitive damages in the amount of $1 million). A Special Committee of the\nBoard of Directors of the Company conducted an investigation into the option\nallegations made by the plaintiffs, with the assistance of legal counsel. That\ninvestigation, which involved personal interviews and automated data analysis,\nrevealed no intentional misconduct in relation to prior grants of options by\nthe Company; nonetheless, the Company has agreed to implement a number of\ninternal administrative measures designed to strengthen internal controls in\nrelation to option matters.\n\n\nThe Settlement Agreement contemplates a total payment of $2.1 million\n(inclusive of the plaintiffs' legal costs and all administrative expenses that\nmay be incurred in implementing the settlement) to members of the proposed\nclass, in settlement of all claims that were asserted against TVI, includi...

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