Articling at Thomson, Rogers

Spirit, Passion, Excellence

Character, Preparation, Empathy

Advocacy, Tenacity, Reputation

Tradition, Teamwork, Family

Farm Mutual Financial Services Inc.

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UPDATE: OCTOBER 27, 2010
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We understand that the settlement funds have now been mailed to Qualifying Claimants. If you are entitled to Compensation under the terms of the Settlement Agreement and have not yet received your cheque, please immediately contact Ms. Elizabeth Murphy (416-777-8279) at KPMG, the Class Action Administrator.

Of course, if you have any questions or concerns regarding the Class Action Settlement, please do not hesitate to contact us directly.

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UPDATE: SEPTEMBER 27, 2010
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On September 27, 2010, the Honourable Mr. Justice Perell of the Ontario Superior Court of Justice signed an Order approving the distribution of the settlement funds to the Class. Class Members should receive their settlement funds directly from the Class Action Administrator during the first week of October or shortly thereafter.

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UPDATE: SEPTEMBER 7, 2010
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FMFS SETTLEMENT CONFIRMED!

The deadline for eligible Factorcorp Debenture holders to opt-out of the Settlement has now passed. We are pleased to announce that the opt-out threshold, as specified in the Settlement Agreement, has not been exceeded. Accordingly, the Settlement has been confirmed.

Factorcorp Debenture holders who purchased the Debentures from agents of FMFS are expected to receive compensation of approximately half of their outstanding principal investment in Factorcorp, unless they fall within the group of Excluded Class Members.

The Class Action Administrator is in the process of finalizing the details associated with the distribution of the settlement funds.

It is our expectation that the settlement funds will be sent directly to claimants by the Class Action Administrator in early October 2010 (by mid October latest we hope).

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UPDATE: JUNE 30, 2010
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A Certification and Settlement Approval motion with respect to a class action against the directors of a bankrupt investment company that were alleged to have breached their duty to the customers of that company.  The $21.25 million settlement was approved.

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IMPORTANT UPDATE: JUNE 14, 2010
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SETTLEMENT APPROVED!

On June 14, 2010, the Ontario Superior Court of Justice certified the class action against the Directors of FMFS and approved the Settlement Agreement reached by the parties. The Settlement Agreement allows all Factorcorp Debenture holders who purchased the Debentures from agents of FMFS to obtain Compensation of roughly half of their outstanding investment in Factorcorp, unless they fall within the group of Excluded Class Members.

Those eligible for Compensation need not do anything to claim your Compensation.

Please note that Compensation will not likely be available until the end of September, 2010.

The Court also ordered that the class action certified against FMFS be discontinued in light of the bankruptcy of FMFS and the settlement reached.

View the Order regarding the Approval of the Settlement Agreement and the Order regarding the discontinuance of the class action against FMFS.

Class Members will shortly be receiving a formal Notice from the Class Action Administrator regarding this Settlement.
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UPDATE: MAY 25, 2010

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Motion for Certification and Settlement Approval proceeding on June 14th, 2010!

The parties have reached a proposed settlement agreement designed to end all litigation relating to investments in Factorcorp debentures by those that purchased the debentures from agents of FMFS.

A motion seeking certification of the claim against the Directors of FMFS and Court Approval of the Settlement will be heard by the Court on June 14th, 2010.  

- Order regarding the Notice to class members
- Review the actual Notice of the Motion for Certification and Settlement Approval.  

Learn more about the proposed Settlement and to review the Settlement Agreement.

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UPDATE: FEBRUARY 04, 2010
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MEETING: Wednesday, February 10, 2010 at 7:30 p.m.
Glencoe District High School (Cafeteria)
3581 Concession Drive, Glencoe, ON, N0L 1M0

Thomson, Rogers is hosting a meeting of class members in the cafeteria of the Glencoe District High School, on Wednesday, February 10, 2010, beginning at 7:30 p.m.  The purpose of this meeting is to provide class members with information on the status of the FMFS litigation.

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UPDATE: MAY 8, 2009
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The Class Action against the bankrupt Farm Mutual Financial Services Inc. has now been certified. A Certification Notice has been approved by the Court. The Certification Notice provides that any Class Members who do not wish to be part of the Class Action must opt out by July 31, 2009. Click here to see a copy of the Order of Justice Perell dated May 8, 2009.

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On November 13, 2008, Thomson, Rogers issued a class action against the Directors of Farm Mutual Financial Services Inc. on behalf of all clients of Farm Mutual Financial Services Inc. that purchased debentures in Factorcorp Financial Inc. ("Factorcorp").

The class action claims millions of dollars in damages from the Directors of Farm Mutual Financial Services Inc. associated with their alleged failure to properly supervise the now bankrupt, Farm Mutual Financial Services Inc., regarding their sale of debentures in Factorcorp.

The class action claim against the Directors of Farm Mutual Financial Services Inc. has been commenced by Bob Zopf, a debenture holder and an unaccredited investor who was sold debentures in Factorcorp by an agent of Farm Mutual Financial Services Inc.

A copy of the Statement of Claim against the Directors of Farm Mutual Financial Services Inc., issued November 13, 2008, can be found below under Related Documents.

Back on June 24, 2008, Thomson, Rogers issued a class action against Farm Mutual Financial Services Inc. on behalf of all clients of Farm Mutual Financial Services Inc. that purchased debentures in Factorcorp.
Since that time, Farm Mutual Financial Services has gone into bankruptcy.

The class action against Farm Mutual Financial Services Inc. claims millions of dollars in damages from Farm Mutual Financial Services Inc. associated with their alleged sale of debentures in Factorcorp to unaccredited and inappropriate investors and their alleged responsibility for advising, directing and requiring debenture holders to redeem their debentures thereby causing Factorcorp's bankruptcy.

The class action claim against Farm Mutual Financial Services Inc. has been commenced by Bob Zopf, a debenture holder and an unaccredited investor who was sold debentures in Factorcorp by an agent of Farm Mutual Financial Services Inc.

Update

On April 22 and 23, 2009, Justice Morawetz heard extensive arguments about whether or not the millions of dollars managed by the bankrupt Farm Mutual Financial Services Inc. should be considered property of the bankrupt such that it may be possible for the class action claimants to ultimately be compensated out of those funds. Justice Morawetz reserved his decision, meaning that it will be a matter of weeks before he releases his decision with respect to this matter. Justice Morawetz' decision will be available on this website once it is released. We sincerely thank all class members who were able to make it into Toronto to attend the motion.

In a decision released October 20, 2009, Justice Morawetz of the Ontario Superior Court of Justice (Commercial List) ruled that the millions of dollars in Pooled Fund Securities managed by the bankrupt, Farm Mutual Financial Services Inc. are to be returned to the corporate unitholders. The consequence of this decision is that the bankrupt FMFS has virtually no assets available to respond to the claims by the Factorcorp debenture holders. It is not yet known whether an appeal of this decision will be initiated. While this is bad news for Factorcorp debenture holders, the focus of these Factorcorp claims will now shift to the yet to be certified class action claim issued by Thomson, Rogers against the Directors of FMFS.

Click here to review the decision >>

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Important Farm Mutual Financial Services Motion on April 22nd!

On Wednesday, April 22nd, 2009, a motion will be heard by the Court regarding whether or not millions of dollars being managed by the bankrupt Farm Mutual Financial Services Inc. are funds that should be made available to creditors such as the class action claimants that purchased Factorcorp debentures.

The motion is expected to be heard starting at 10 AM on Wednesday, April 22nd, 2009 at 330 University Avenue, in downtown Toronto (expected to be in Courtroom 8-1).

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On March 16th, 2009, a class action was certified by the Ontario Superior Court of Justice against the bankrupt Farm Mutual Financial Services Inc. (FMFS) on behalf of all those that purchased FactorCorp debenture from agents of FMFS. A notice plan will be approved by the Court at the next Case Conference likely to be in April. Thereafter, a formal notice to class members will be provided.

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On January 30, 2009, Thomson, Rogers served the Trustee in Bankruptcy for Farm Mutual Financial Services Inc. (FMFS) with our Motion for Certification and for Default Judgment in this matter. That Motion is scheduled to be heard by the Court on March 6, 2009. In addition, a Motion brought by the Trustee in Bankruptcy for FMFS for directions from the Court regarding potential assets of the bankrupt FMFS has been scheduled to be heard on April 21, 2009. Information will be updated on this website as matters progress.

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On November 24, 2008, the Court lifted the 'stay' of our claim against the bankrupt, Farm Mutual Financial Services Inc. Accordingly, our claim may now proceed. We will soon be requesting a timetable for our Motion for Certification. Further updates will be posted as matters develop. View the Order to Continue

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A copy of the Statement of Claim against Farm Mutual Financial Services Inc., issued June 24, 2008, as well as a press release can be found below under Related Documents.