Champion Stakeholders LLC announces that an Amended Statement of Claim in the class action against Brookfield Asset Management Inc., Brookfield Special Situations Ltd. and Hammerstone Corporation was filed on the 27 May, 2014, file number 1401-05797, in Calgary in the Court of Queen’s Bench of Alberta.
The Amended Statement of Claim appoints Mr. Lanny K. McDonald as the representative plaintiff. Lanny McDonald is a respected NHL player, has won as many awards for his humanitarian efforts as he did for sportsmanship. Mr. McDonald was inducted into the Hockey Hall of Fame in 1992. Mr. McDonald sat on the board of Birch Mountain Resources Ltd, was also a shareholder and creditor of the company.
The amended Statement of Claim alleges that the defendants acted in a manner that was oppressive, unfairly prejudicial to, and unfairly disregarded the interests of the Birch Mountain Resources Ltd. common shareholders.
The assets of a junior public company, Birch Mountain, worth an appraised $1.6 billion dollars by AMEC, dated August 01, 2006 prepared in accordance with National Instrument 43-101 were transferred to a private company, 1439442, for a cash outlay of less than $50 million dollars, as stated in the Amended Statement of Claim.
The action is based on the oppression remedy as well as the good faith doctrine and the tort of negligent misrepresentation.
The Amended Statement of Claim alleges that:-
- Brookfield and Tricap, usurped shareholders rights and debenture holder rights.
- Brookfield and Tricap contrived a default to put Birch Mountain into receivership.
- Brookfield director, James Pattison owner of Great Pacific Capital Corp, received a preferential deal as compensation for his unsecured subordinate convertible debenture shares usurping other subordinate convertible debenture shareholders.
- Brookfield and Tricap via the PwC receiver's report omitted informing the Receivership Court of the value of the asset and therefore were able to acquire the $1.6 billion dollar asset for undervalue.
- Brookfield and Tricap via the PwC receiver's report omitted informing the receivership court of the Q3 and cash flow break even position of Birch Mountain.
The allegations in the lawsuit have not yet been proven in court.
Plaintiff’s counsel believe they will demonstrate the oppressive business tactics of Brookfield and their subsidiaries which resulted in Birch Mountain shareholders from across North America losing all of their investment.
"Families, careers, and retirements were damaged and in some cases destroyed," states Champion Stakeholders, the group of three shareholders who initiated the lawsuit.
For information about the class action lawsuit, including the Amended Statement of Claim, please review the official legal website at: