THE DEADLINE TO SUBMIT A CLAIM IS OCTOBER 30, 2024.
The lawsuit alleged that the Defendant made misrepresentations (untrue statements) on some of their prospectuses about the mineral reserves for its Cerro Los Gatos mine in Mexico. None of these allegations have been proven in court and this settlement releases the defendant from liability for those falling under the class definition who have not opted out.
Who does the settlement affect?
The settlement was approved on behalf of the following people:
all persons and entities (other than certain “excluded persons”), wherever they may reside or be domiciled, who:
(i) purchased Gatos Silver securities under Gatos Silver’s Canadian prospectuses filed in October 2020 and July 2021 and in the distributions to which they related; or
(ii) acquired Gatos Silver securities during the period from October 28, 2020 until January 25, 2022 at 6:52 p.m. Eastern Standard Time on any Canadian exchange (including, without limitation, the Toronto Stock Exchange) or any Canadian alternative trading system.
Namely the ‘impugned’ or specific prospectuses that are eligible for compensation are:
- October 27, 2020 – Base Prep Prospectus
- October 27, 2020 – Supplemental Prep Prospectus
- July 12, 2021 – Short Form Base Shelf Prospectus
- July 15, 2021 – Prospectus Supplement
ONLY the securities acquired in the secondary market between October 28, 2020 and January 25, 2022 6:53 EST are eligible for recover. Additionally other stock exchanges like the American NYSE are not eligible for compensation.
Claimants must have kept some shares after January 25, 2022 at 6:52 pm EST to be eligible for compensation. If you sold all of your shares prior to this date you will not receive compensation even if you are a member of the class.
Other information required are the shares sold between October 28, 2020 and the date the claim is filed (Section E), and the shares held at the time the claim is filed (Section F).
What is in the settlement?
There is a $3 million USD settlement fund. The net amount will be distributed pro-rata to eligible claimants based on factor such as the number of shares, when you sold them and the difference between the purchase price and selling price, as well as the USD:CAD conversion rate on the day of purchase or sale of the shares.
*For claimants who would be entitled to less than $10.00 you will not receive compensation, this money will be added back to the settlement fund.
If there is money leftover in the fund due to uncashed cheques or otherwise, the Claims administrator will try to do a second distribution if it is feasible or a cy-pres distribution if not.
What do I have to do and by when?
Each claimant must fill out the claim form in full and attach all supporting documents to be RECEIVED by the claim’s administrator by October 30, 2024.
Parts to the claim form:
Part I – Identity and payment information
Part II – Securities dates and amounts
Part III – Proof of transactions
Part IV – Signatures and Declaration
For more information the claims administrator’s website provides step by step instructions on how to file a claim. In order to verify claims, the Administrator will require supporting documentation, including brokerage statements or confirmations evidencing the claimed transactions. You must have these submitted by the deadline to be eligible for compensation. Please ensure you leave yourself enough time to gather and send this information.
You must fill out a separate claim form for each account that the Securities were held in.