Skip navigation

Mutual Fund News

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.

Search Fund News


Advanced Search

GlobeinvestorGOLD.com

Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.

Discover a wealth of investment information and and exclusive features.

Free E-Mail Newsletters

  • Morning news headlines
  • Morning business headlines
  • Financial highlights
  • Tech alert
  • Leisure

Sign-up for our free newsletters



Back to top