The out-of-court settlements reached this week in the Crocus Investment Fund class-action lawsuit have enabled the fund's receiver to recommend cash payments be made to shareholders.
In a prepared statement, Deloitte said the ultimate decision whether to pay out money to the fund's 34,000 shareholders will be made by the court.
"The recent events are evidence of progress in attempts for a distribution to occur, however the receiver is still some time away from being able to make the necessary motion...a distribution before the fall, although possible, is not likely," Deloitte said.
The class action reached settlements with four defendants, including the province, earlier this week. Combined with an earlier settlement with the fund's officers and directors, the class action is set to receive $12 million.
In late 2005 Deloitte made a request to distribute $10 million of the fund's cash reserves to Crocus shareholders. It was turned down by a Court of Queen's Bench judge.
geoff.kirbyson@freepress.mb.ca
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