The plaintiffs were three investment fund managers that purchased convertible debentures issued by Great Basin, a British Columbia public company developing gold mines in South Africa and Nevada. Some of the bonds were purchased through prospectus offerings, and others were purchased on the secondary market. The plaintiffs alleged they realized only a portion of the face value of the bonds when Great Basin became insolvent in mid-2012 and its mining assets were sold. The plaintiffs were unable to claim against the insolvent company and so brought claims against the former directors and officers, framed as statutory claims under the Securities Act and as common law claims based on negligence and breach of fiduciary duty. The claims were resolved on a confidential basis.
Linden Advisors LP, Crystalline Management Inc. and Wolverine Asset Management, LLC, v. Dippinaar et al.
B.C.S.C. Action No. S-146299
NST acted for the former directors of Great Basin Gold Ltd. in a complex action brought by three New York-based investment firms alleging they had suffered significant losses when Great Basin became insolvent and was unable to repay its bondholders.
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