OSC To Get A Settlement Of $10 Million From Home Capital

A settlement has been agreed upon by the Home Capital with the Ontario Securities Commission in regards to claims of misleading disclosure. Claire R. McDonald who brought a class action also came to a second settlement.

The amount for the OSC settlement is about $10 million with extra costs added.

Home Capital Group said in a statement, outlining other terms: “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 fee will be $29.5 million, with $11 million also included in the overall payment made to the OSC.

The settlements is open for discussion of approval, with both coming to an agreement.

“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. The Company also acknowledges that the Commission is not to blame for the events of recent months involving its liquidity position.”