A class action is a lawsuit filed by one or more persons on behalf of a larger group of people, companies or entities (known as the “class” or “class members”) whose claims share common legal issues.
Class actions provide a cost-effective way for groups of people with common legal interests to pursue a lawsuit. It allows the class to benefit from a legal case without having to spend their own money on legal and other expenses and without having to manage all of the steps and obligations related to their own legal case.
TopIn 2013, a Class Action lawsuit was commenced in Ontario by Class Counsel (the “Action”) on behalf of all persons and entities, wherever they may reside or be domiciled, who acquired Securities in Northland Resources S.A. between April 1, 2012 and January 23, 2013 (the “Class Period”) and who held some or all of those Securities as of January 23, 2013 (“Class Members”).
The Action alleges that the Defendants breached the Ontario Securities Act, Ontario common law and/or applicable Norwegian law by making material misrepresentations and omissions to public investors and/or failing to make timely disclosure of significant cost escalations and overruns related to the Kaunisvaara Project. Damages were claimed on behalf of holders of Northland’s publicly traded Securities.
Unless you choose to exclude yourself by “Opting-Out” of the Action, you are automatically a Class Member if you acquired Securities in Northland Resources S.A. between April 1, 2012 and January 23, 2013 and held some or all of those Securities as of January 23, 2013.
The deadline to Opt-Out was December 30, 2022.
Class Members are bound to the terms of the Settlement, which included the opportunity to file a Claim Form to settlement payment. The deadline to file a claim was December 15, 2023 and the final date to submit a late claim was April 25, 2025. Decision letters have been issued and it is no longer possible to submit a late claim.
If you are a Class Member and did not file a Claim Form you are still bound to the terms of the Settlement but cannot receive any money back.
TopA Settlement occurs when the parties in the litigation agree to resolve the dispute between them on terms that are established through negotiations.
In this case, a Settlement has been reached with the Defendants in which EUROS 7,550,000.00 was paid for the benefit of Class Members (the “Settlement”). Pursuant to the terms of the Defendants’ insurance policies, the Settlement funds will be paid in EUROS.
In exchange for the Settlement payment, the Defendants will be provided with a full and final release of claims made against them in relation to the facts and issues alleged or which could have been alleged in the Action. The Settlement is not an admission by the Defendants of liability, fault, or wrongdoing but is a compromise of the disputed claims. The Settlement represents a final resolution of all issues contained in the Action.
A copy of the Settlement Agreement can be found here.
Northland declared bankruptcy in 2014. The Company no longer operates and it has no assets following a bankruptcy liquidation. The Settlement recoveries are payable from certain limited securities-related insurance coverages that were in place prior to the bankruptcy. The Settlement recoveries include the full limit of Northland’s securities-related insurance coverage (EUROS 5 million) plus the full amount of the Defendant directors’ and officers’ calculated exposure under liability limits contained in Ontario Securities law and amounts for legal costs and costs of notice and administration.
The alternative to Settlement is to contest the Class Action litigation through procedural steps and a trial. Litigation involves uncertainly, delay and risk. In this litigation, there are risks that the case could fail, including factual complexity, legal and jurisdictional uncertainty and procedural considerations that could impact the scope and size of the case.
Most importantly, even if the Action were completely successful, there is the likelihood that the Defendants do not have assets or responsive insurance coverages that could pay any more than the Settlement provides. In fact, there are potential outcomes where the case could be successful on its merits and the Defendants’ insurance resources are waived, do not respond at all or they are eroded to a level of value that is lower than the Settlement recoveries.
Class Members had until December 15, 2023 to file a Claim Form to apply for a settlement payment. Late claim submissions were accepted until April 25, 2025. The Court-approved Claims Administrator has completed their evaluation of the claims submitted. Decision letters were issued to all claimants on May 9, 2025.
Claimants now have the right to seek a reconsideration of their claim. For more information about the reconsideration process, please see FAQ 14.
TopA Claim Form is a document on which eligible Class Members are asked to provide information regarding the purchase and sale of their Northland shares during the Class Period.
Only eligible Class Members who submit a claim form will be considered to receive compensation from the Settlement.
The deadline to submit a Claim Form was December 15, 2023. The deadline to submit a late claim was April 25, 2025. Decision letters and been issued and it is no longer possible to submit a late claim.
TopEligible Class Members must have filed a claim form in order to provide information on how many eligible shares they purchased and/or sold during the Class Period. The number of eligible shares allowed the Court-Appointed Claims Administrator to calculate what portion of the Settlement Fund each Class Member is entitled to.
The deadline to submit a Claim Form was December 15, 2023. The deadline to submit a late claim was April 25, 2025. Decision letters and been issued and it is no longer possible to submit a late claim.
TopThe claims period ran for a period of four (4) months between August 15, 2023 to December 15, 2023. Late claim submissions were accepted up until April 25, 2025. Decision letters and been issued and it is no longer possible to submit a late claim.
TopClass Members who submitted a claim form were advised by the Court-appointed Claims Administrator of the results of their claim submission through a decision letter. Decision letters were issued on May 9, 2025.
Approved claimants MUST provide the requested payment information by June 8, 2025 in order to receive their settlement payment.
It is currently anticipated that settlement funds will be distributed in the second quarter of 2025.
TopDecision letters were issued to all claimants on May 9, 2025. In order to have an approved claim and be eligible for a settlement payment, a claimant must have sustained a Net Loss as defined in the Court-approved Plan of Distribution.
Each approved claim was calculated to receive a Settlement Input Value reflective of their Net Loss in order to determine their proportionate share of the net settlement funds. Please review the Court-approved Plan of Distribution for a detailed description of how Settlement Input Values were calculated.
If you received a decision letter rejecting your claim, it is because you made a claim that did not meet the requirements set out in the Plan of Distribution and/or it was not supported by the necessary documentation.
Claims were rejected if:
If you believe there is an error with your decision, please review FAQ 14.
TopIf you wish to dispute your decision letter, you may request a reconsideration of the determination by sending a statement in writing asking for a “Claim Reconsideration” and explaining the reason(s) that you believe the result is incorrect to the Claims Administrator.
All Claim Reconsideration requests, along with any supporting documents, must be submitted or postmarked by June 8, 2025.
Claims Reconsideration requests must be sent to the Claims Administrator by e-mail or direct mail:
1. E-mail: [email protected]
2. Mail:
Northland Resources S.A. Class Action Settlement
c/o RicePoint Administration Inc.
P.O. Box 3355
London, ON N6A 4K3
Canada
It is currently anticipated that settlement funds will be distributed in the second quarter of 2025
You do not have to pay the lawyers working on the Action any money out of pocket.
Class Counsel were not paid for any of their work since 2013 when the Action was commenced. They agreed to a retainer agreement with the representative Plaintiff whereby they would provide the legal services in support of the Action on a contingent fee basis. That means that they agreed to provide all necessary legal services in this complicated and long-running litigation without any guarantee that they would be paid for their work. They also agreed to pay and to carry substantial out of pocket expenses for the case (these are called “disbursements” and they include the cost of specialized expert witnesses, travel and investigative expenses, among other costs). By carrying those costs, Class Counsel avoided the need for the involvement and expense of a third-party litigation funding firm that would otherwise be needed to provide economic support to the case.
Class Counsel agreed that they would be paid for their services and for the expenses they incurred and carried only if this Action was successful. They also agreed that their fees and expenses would be paid from any money recovered in the litigation.
The Court has approved Class Counsel’s request to be paid for their legal fees, which are 30% of the Settlement funds, plus reimbursement of disbursements incurred and applicable taxes. The approved Class Counsel fees, disbursements and applicable taxes will be paid out of the Settlement funds.
A copy of the Court’s Order approving Class Counsel legal fees and disbursements can be found on the Documents tab.
Eligible Class Members had until December 15, 2023 to file a Claim Form. The final date to submit a late claim was April 25, 2025. Decision letters were issued and it is no longer possible to submit a late claim.
If you received a decision letter approving your claim, you must provide the payment information requested by June 8, 2025 in order to receive your settlement payment. The required PIN number was provided in your decision letter. If you require a further copy, please contact the Claims Administrator.
If you received a decision letter rejecting your claim, please see FAQ 14 for more information on your options.
Please notify the Claims Administrator if your mailing or e-mail address changes.
Please check your e-mail inbox, including your junk/spam folder, and/or mail regularly for communication from the Claims Administrator regarding your claim.
Foreman & Company
Attention: Northland Resources S.A. Class Action
4 Covent Market Place
London, ON N6A 1E2
E-mail: [email protected]
Toll Free: 1-855-814- 4575 ext. 107
Fax: 1-226-884-5340