The OSC has approved a settlement related to Home Capital Group’s failure to comply with its continuous disclosure obligations, including making misleading statements to its investors.
It means that the lender will pay $10 million for the benefit of investors and agreed that no legal fees or expenses will be deducted, it will also pay $500,000 in costs. There must also be a review of its continuous disclosure practices with a report delivered to its board and to OSC staff within one year.
“If public companies are aware of events that impact the performance of their business, they must disclose that information to investors, and they must do so in a manner that is not misleading,” said Huston Loke, Director of Corporate Finance at the OSC. “Disclosure requirements are a cornerstone of our investor protection regime and are essential to fair and efficient markets. When companies or their management fail to comply, we will take action.”
The settlement also relates to three former executives of Home Capital Group, Gerald Soloway, Robert Morton and Martin Reid.
In a statement, Home Capital Group said:
“As previously announced, the Company entered into two agreements which comprise a global settlement of the OSC proceeding and related class action with each settlement being conditional on the approval of the other. The order approving the OSC settlement is effective only upon the final court approval of the class action settlement. A hearing to consider approval of the class action settlement is scheduled for August 21, 2017.”