Court OKs Bre-X class action settlement; investors get tiny fraction of losses

CP23591964
The Bre-X Minerals building is shown in Calgary on May 2, 1997. The lengthy battle by Bre-X investors to recover billions in Canada\'s largest mining fraud appears to be over in what one of the original plaintiff lawyers in the case called a "sad day" for accountability in Canada. Under a settlement approved Thursday by the Alberta Court of Queens Bench, the remaining class-action suits were dismissed against the main defendants in the case, the estate of Bre-X\'s late founder and CEO, David Walsh, and chief geologist John Felderhof. THE CANADIAN PRESS/Mike Ridewood

TORONTO – The lengthy battle by Bre-X investors to recover billions of dollars in Canada’s largest mining fraud is basically over.

Under the settlement agreement approved by the Alberta Court of Queens Bench, all class-action suits against principals in the case have been dismissed.

The Calgary court made the ruling at the request of bankruptcy trustees Deloitte and Touche, which said there was no realistic prospect of realizing any significant recovery through the litigation and that the costs of proceeding were prohibitive.

As a result, all parties agreed to a payment of $5.2 million to be divided among investors who apply for a settlement.

Bre-X became the largest mining fraud in Canadian history when its claim of a major gold discovery in Indonesia was found to be a fake in 1997.

It’s estimated that investors around the globe lost $3 billion.

News from © The Canadian Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Canadian Press

The Canadian Press is Canada's trusted news source and leader in providing real-time, bilingual multimedia stories across print, broadcast and digital platforms.

Related Articles