Nobilis Health Corp. (TSX: NHC, NYSE MKT: HLTH, FRA: NH1)
Ontario Superior Court of Justice, Court File No: CV-16-544173CP
For more information about this action, or to obtain a copy of the most recent statement of claim, please contact the Firm at email@example.com.
This securities class action relates to Nobilis Health Corp. (“Nobilis”) publishing core documents and making other statements containing misrepresentations of material fact regarding Noblis’ accounting for its acquisition of Athas and First Nobilis, as found in its FYE 2014 and Q1 and Q2 2015 financial statements, which resulted in an overstatement of goodwill and provided the investing public with a misleading view of the Company’s revenues, expenses, and general business operations.
On January 5, 2016, Nobilis issued a press release confirming that its consolidated financial statements for FYE 2015 and Q1 and Q2 2015 contained multiple errors, including in respect of the Company’s business combination accounting pertaining to the Athas and First Nobilis acquisitions, and that these erroneous financial statements required restatement and should no longer be relied upon.
The Plaintiff served his materials for leave (permission) to commence a securities claim pursuant to s. 138.8 of the Ontario Securities Act and for certification pursuant to s. 5 of the Class Proceedings Act, 1992 on February 1, 2017 with these motions scheduled to be heard on December 11-14, 2017.
On June 14, 2018, The Honourable Justice Perell of the Ontario Superior Court of Justice approved a partial settlement reached between the Class and all of the Defendants apart from Nobilis. Pursuant to the settlement, Nobilis’ auditor Calvetti Ferguson, P.C. paid USD $1.0 million in exchange for the action being dismissed against all Defendants except for Nobilis. Class Counsel was paid interim fees plus reimbursement for disbursements out of this partial settlement. A copy of the order approving the partial settlement can be found here.
On July 29, 2019, Justice Perell approved a settlement reached between the Class and the sole remaining Defendant, Nobilis, thereby ending this action. Details of the settlement and request for lawyers’ fees, as well as a copy of Justice Perell’s Order and Reasons for Decision can be found here.
Claim or Motion for Authorization issued: January 18, 2016
Class Period: March 23, 2015 to and including January 12, 2016
Leave to Proceed Record Served: February 1, 2017
Shareholders’ Canadian Counsel: Andrew Morganti, Eli Karp and Hadi Davarinia, Morganti & Co.
Shareholders’ U.S. Counsel: Willie C. Briscoe, The Briscoe Law Firm, PLLC; and Jeremy A. Lieberman, Pomerantz LLP
Shareholders’ Canadian Expert(s): Andrew Mintzer, Hemming Morse LLP
Corporate Defendants’ Canadian Counsel: Alan Lenczner, Lenczner Slaght Royce Smith Griffin LLP
Auditor’s Canadian Counsel: Eric Dolden, Dolden Wallace Folick LLP
Defendants’ U.S. or European Counsel: Justin M. Waggoner, Smyser Kaplan & Veselka, LLP