Office towers are shown in the Bay Street financial district in Toronto on Friday, Aug. 5, 2022. THE CANADIAN PRESS/Nathan DenetteA proposed class-action lawsuit against asset manager Emerge Canada Inc. will no longer advance in court because lawyers representing harmed investors have found the fund company has no assets to recover.
Emerge missed a deadline to pay back $4.7-million it owes to several investment funds it manages, leaving investors as unsecured creditors without their money.Mr. Myers told The Globe and Mail the law firm had recently been denied funding from Ontario’s class proceedings fund – a source of financial support for approved class-action plaintiffs for legal disbursements. It can also compensate plaintiffs for costs that may be awarded against them. During the application process, Mr.
Last June, Kalloghlian Myers filed the class-action lawsuit on behalf of Ian Cluroe, an Arizona-based investor who invested about $156,000 in four of the Emerge ARK funds. He received approximately $58,000 in proceeds. Mr. Cluroe told The Globe he first came across the Emerge funds because of the link to Ms. Wood’s brand, ARK.
“It is very unfortunate because it doesn’t feel like there was very much regulatory oversight at all,” Mr. Cluroe said. “We need to shine a light on this behaviour because whether it was just incompetence or outright fraud, it is something that the regulator should pay more attention to.”” and continues to oversee Emerge, but has not yet disclosed what issues are under review or the timing for completion.