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 alleged 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.
TopUnless 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 seek a 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 were issued on May 9, 2025 and settlement payments were sent on September 15, 2025. 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 issued decision letters to all claimants on May 9, 2025. Approved claimants that provided their payment information were sent their settlement payment on September 15, 2025.
Approved claimants who have not received their settlement payment have until October 7, 2025 to provide their payment information through the payment portal in order to receive their payment. Failure to provide payment information will cause approved claimants to forfeit their settlement payment. Forfeited settlement payments will be re-allocated pursuant to the Court-approved Plan of Distribution.
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 settlement payments have been issued and it is no longer possible to submit a late claim.
TopThe Claims Administrator issued settlement payments on September 15, 2025 to approved claimants whose payment information was submitted on or before June 8, 2025. Claimants who provided an e-mail address will have received an e-mail notifying them that their payment was issued.
Approved claimants who have not received their settlement payment have until October 7, 2025 to provide their payment information through the payment portal. Failure to provide payment information will cause approved claimants to forfeit their settlement payment. Forfeited settlement payments will be re-allocated pursuant to the Court-approved Plan of Distribution.
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.
TopIf 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:
Claimants had until June 8, 2025 to dispute their claim decision. It is no longer possible to dispute a rejected claim.
TopClaimants had until June 8, 2025 to dispute their claim decision. It is no longer possible to dispute a rejected claim.
TopThe Court approved Class Counsel’s legal fees of 30% of the Settlement funds, plus reimbursement of disbursements incurred and applicable taxes. The approved Class Counsel fees, disbursements and applicable taxes were 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.
TopForeman & 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