Crocus
Crocus Investment Fund (2004 Cease Trading Order)
This class action arose after the Manitoba Securities Commission, on December 102, 2004, halted trading in shares of this fund--the province's largest labour-sponsored investment fund. Share value had peaked at $15.39 in July 2000 but steadily declined until trading was halted.
After protracted litigation a receiver was appointed, assets liquidated and the proceeds distributed by way of settlement to the class members, together with $12,500,000.00 in damages. The total payout should be about $6.18 per share for some 35,000 investors.
On December 10, 2004, the Manitoba Securities Commission halted trading in shares of the Crocus Investment Fund, the province’s largest labour-sponsored investment fund. Share value had peaked at $15.39 in July 2000 but steadily declined until the trading was halted. At last word, the value was believed to be less than $7 per share, but redemption remains impossible for the 33,000 investors who have poured nearly $200 million into the fund.
Click here to view the statement of claim, which was issued in Winnipeg on July 12, 2005, as court file number CI05-01-42765.
On October 25, 2005, the receiver (who oversees the assets of Crocus) argued a motion before Justice McCawley seeking approval of the receiver's plan to liquidate the assets of Crocus over a period of time. The Manitoba Federation of Labour argued its contrary motion seeking an order requiring a vote of shareholders to confirm its proposal that a third party manager, Growth Works, manage Crocus's assets.
Our team did not take any position on this motion other than to express
our concern that the decision should be taken in the best interests of the
shareholders. Justice McCawley reserved her decision, which was released
on October 27, 2005. Justice McCawley accepted the receiver's position and
rejected that of the Manitoba Federation of Labour.
Unfortunately, due to a conflict of interest involving co-counsel, we were unable to continue as counsel for the plaintiff class. Consequently, you should feel free to contact new class counsel, David Klein at www.kleinlyons.com.
In February 2008 a settlement in principle was concluded with all defendants, other than the brokerage, Wellington West, for the sum of $12,000,000.00. The court will likely consider the proposed settlement on June 23-25, 2008. When this payment is added to the $88,000,000.00 in assets held by the Receiver, shareholders should recover close to $100,000,000.00.
If you are a Crocus Investment Fund Class A shareholder you may also visit the website www.crocuscanadianclassaction.ca
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