TORONTO, Nov. 28, 2017 /CNW/ - Home Capital Group Inc.
("Home Capital" or "the Company") (TSX: HCG) today announced it has
received a draft statement of claim – not yet filed in court --
prepared on behalf of West Face Long Term Opportunities Global
Master LP ("West Face"), a Caymans Island limited partnership which
opted out of a global settlement of the securities class action
earlier this year with Home Capital. The potential claim is based
on allegations of misrepresentation. The amount claimed as damages
would be $70 million.
The Company believes it has valid defences and, if West Face
commences the claim, the Company intends to fully defend its
conduct, as well as to investigate the conduct of the various short
sellers and the propriety of their actions whether acting alone or
in concert with others.
As described in the draft claim, West Face built a significant
short position in Home Capital in the spring and summer of 2013. It
then reversed its investment strategy, covering its short position
between the fall of 2013 and the spring of 2015.
Caution Regarding Forward-looking Statements
This press release contains forward-looking information within the
meaning of applicable Canadian securities legislation. Please refer
to Home Capital's 2016 Annual Report, available on Home Capital's
website at www.homecapital.com, and on the Canadian Securities
Administrators' website at www.sedar.com, for Home Capital's
Caution Regarding Forward-looking Statements.
About Home Capital Group Inc.
Home Capital Group Inc. is a public company, traded on the Toronto
Stock Exchange (HCG), operating through its principal subsidiary,
Home Trust Company. Home Trust is a federally regulated trust
company offering residential and non-residential mortgage lending,
securitization of insured residential mortgage products, consumer
lending and credit card services. In addition, Home Trust offers
deposits via brokers and financial planners, and through its direct
to consumer deposit brand, Oaken Financial. Home Trust also
conducts business through its wholly owned subsidiary, Home Bank.
Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
SOURCE Home Capital Group Inc.