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Out-of-court settlement made in Manitoba lawsuit

The Canadian Press

Winnipeg -- The Winnipeg Free Press is reporting that an out-of-court settlement has been reached in the $200-million Crocus Investment Fund class-action lawsuit.

Although final details are still being worked out, the newspaper says sources confirm a framework has been reached that could see Chubb Insurance pay out as much as $5-million - the full extent of its coverage. In exchange, all directors and officers named in the suit would be dropped as defendants.

More than 33,000 investors lost money when Crocus, a labour-sponsored investment fund, collapsed in December of 2004 after 12 years on the market. The class-action lawsuit has yet to be certified.

With officers and directors dropped, the Free Press says, the suit will focus its attention on the province, the Manitoba Securities Commission and a variety of professional firms that provided services to Crocus.

© 2007 The Globe and Mail. All rights reserved.

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