Dec 31, 2015

​The December Month End Report:

1. Regarding the law suit on behalf of 122 plaintiffs, we still have no
decision. Class members will recall that this appeal was argued before
three judges of the Federal Court of Appeal in Toronto on November 17.
The government asserts that this law suit against CRA has no chance of
success. Two judges, a Prothonotary and a Justice of the Federal
Court, have both found against the government’s position and the
government has appealed once again to the Federal Court of Appeal.

2. Four lawyers in our office have been working on the issuance of the
class action. In addition to suing CRA we intend to sue some of the
promoters, a number of lawyers, law firms, accountants, accounting
firms, and appraisers. By suing these others, which we think is viable,
we widen the net for what we hope will be effective recovery on behalf
of the class. This is a separate action from the law suit on behalf of the
​122 plaintiffs.

3. The work involved in connection with the claim has been more time
consuming and complex than we originally expected. We had thought
issuance of the claim in December might be possible. We want to do
things correctly and not put doing things quickly ahead of issuing the
best claim we can. More time has been needed than was expected.

4. 2,431 have provided $500 and signed retainer agreements to fund
the expenses and, in smaller part, the fees in taking this battle to CRA. I
am even more confidant of recovery than I was when we undertook to act
on these two actions. 2,431 is impressive. And as more people join,
that number will continue to grow to the benefit of the class.
​
Yours truly,

E.F. ANTHONY MERCHANT, Q.C.
MERCHANT LAW GROUP LLP