TORONTO, June 26, 2002 (PRIMEZONE) -- A class action has been commenced against Yorkton Securities alleging that the brokerage firm improperly recommended, sold and promoted shares of Book4Golf.com (Pink Sheets:BFDGF) Corporation in circumstances where they were in a conflict of interest. A Notice of Action issued today in Toronto alleges that the defendants, Yorkton Securities, its parent company Yorkton Financial and G. Scott Paterson, did so in order to realize personal gains at the expense of innocent investors. The claim alleges that as a result of Yorkton's improper promotion of Book4Golf's securities, share prices were artificially inflated causing investor losses when the share price of Book4Golf subsequently collapsed. General and punitive damages in excess of $500 million are being claimed.
Following Book4Golf becoming publicly listed on October 14, 1999 the defendants are alleged to have favorably promoted Book4Golf shares despite undisclosed connections with the company and its predecessor corporations. Providing financial advice, positive analyst coverage, and acting as the dominant trading dealer, while being security holders of Book4Golf and its predecessor corporations are listed among several conflicting roles Yorkton Securities and the other defendants are alleged to have had with Book4Golf. The Notice of Action also alleges that the defendants had substantial financial relationships with Book4Golf, its predecessor corporations, and affiliates and related companies of Book4Golf and its predecessor corporations.
Kirk Baert of the Toronto law firm Koskie Minsky added, "Yorkton Securities had a responsibility to disclose its affiliation with Book4Golf but made a conscious decision not to, leading investors to falsely believe their projections were valid."
Koskie Minsky is experienced in handling complex class actions involving pension rights, wrongful dismissal, securities and shareholder misrepresentation, product liability, insurance, consumer protection, transportation disasters and others. Lexpert recognizes lawyers at the firm as being leading practitioners in the area and in related areas of law.
Joseph Groia of the Toronto law firm Groia & Company stated, "Since the bursting of the dot com bubble, thousands of small retail investors have suffered enormous losses on their investments. We believe that it is important for the integrity of Canadian capital markets, that brokerage firms engaged in questionable sales and promotional practices be held accountable for their actions. In our view, it seems manifestly unfair that individual investors lost their savings while a very small and privileged group, at little or no risk to themselves, walked away with millions of dollars. We are confident that once these issues are placed before an Ontario court, at least some of these losses will be recovered."
Groia & Company is a litigation boutique that specializes in corporate commercial and securities litigation. The firm has been involved in several high profile matters before the Ontario Securities Commission and is recognized as a leading firm in its area of expertise. More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca