Home Capital says it has reached a settlement with the Ontario Securities Commission relating to allegations of misleading disclosure. A second settlement has been reached over a class action brought by Claire R. McDonald.
The OSC settlement is for $10 million plus additional costs.
In a statement, Home Capital Group set out other terms of the settlment:
“Gerald Soloway will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of four years and pay an administrative penalty in the amount of $1 million. Each of Robert Morton and Martin Reid will be reprimanded, prohibited from acting as a director or officer of any reporting issuer for a period of 2 years and pay an administrative penalty in the amount of $500,000.”
The class action settlement will be $29.5 million but that includes $11 million of the total payment to the OSC.
The settlements are subject to approval which must be for both agreements.
“Home Capital will accept full responsibility for failing to meet its disclosure obligations to the marketplace and appreciates the importance of the serious concerns raised by the Commission with respect to continuous and timely disclosure.” Said Brenda Eprile, Chair of the Home Capital Board. “The Company also acknowledges that the Commission is not to blame for the events of recent months involving its liquidity position.”
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