Montréal – The hearing in respect of the motion for authorization of a class action filed by Francis Rosso on behalf of all representatives who sold Norbourg, Evolution and Perfolio funds since inception or are part of Tandem Wealth Management began today in Superior Court. The action relates solely to the Autorité des marché financiers (AMF) and not to any of the main players in the Norbourg matter. At the hearing, the AMF will be asking Judge Jean-Yves Lalonde to dismiss the motion for authorization of the class action.
According to the AMF, the proposed class action does not meet any of the criteria required for authorization.
In particular, the group of representatives covered by the class action is in no way homogeneous and cannot be addressed as part of a class action because it includes:
- Representatives whose clients have not incurred a loss as a result of the conduct of the Norbourg Group, and this includes representatives who:
- Purchased and sold units in the Evolution and Perfolio Funds before they were acquired by Norbourg;
- Did not sell a single unit in the Evolution, Norbourg or Perfolio Funds to clients.
- Representatives who took part, according to statements made in the course of other proceedings, in the offences alleged in the Norbourg matter.
- Representatives who, in exchange for transferring clients, received money from the Norbourg Group totalling almost $4.8 million. Francis Rosso himself apparently received $40,000 from the Norbourg Group on February 15, 2005. Some representatives, including Mr. Rosso, would have therefore derived benefits at the expense of defrauded investors.
Moreover, the AMF will point out that the motion contains no allegation whereby the applicant, namely, Francis Rosso, incurred a loss, although he is claiming $161,000 without any details.
As well, the AMF will be arguing that the Act respecting the Autorité des marchés financiers creates no obligation on the part of the AMF toward representatives, whereas representatives have specific and clearly defined obligations toward their clients, in particular under the Act respecting the distribution of financial products and services.
Finally, the AMF finds it rather surprising that Vincent Lacroix is not being sued under the class action brought by Francis Rosso, even though he is one of the main players in the matter.
The AMF’s top priority in this affair is to maximize the amount of funds distributed to defrauded investors without delay. It wants Vincent Lacroix and the other persons involved in this matter to account for their actions before the courts as soon as possible.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.
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Frédéric Alberro (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, choose option 9 for English, then 1 for industry
Consumers and investors: (877) 525-0337, choose option 9 for English, then 8 for consumers