Info class action

Case settled

Cinar

In March 2000, the Association de protection des épargnants et investisseurs du Québec (now known as the Mouvement d'éducation et de défense des actionnaires (MÉDAC)) filed with the Superior Court of Quebec a Motion for authorization to institute a class action against the Cinar Corporation and certain of its directors.

In its motion, MÉDAC claims, among other things, that Cinar failed to respect its legal obligations to its shareholders. In particular, Cinar omitted in the last few years to divulge that it had not complied with all the formalities giving it the legitimate rights to certain fiscal advantages which it had already benefited from in the past. Moreover, Cinar invested, without the consent of its board of directors, amounts totalling $122,000,000 US. These omissions misled the private investor and Cinar's shareholders as to the real value of the company and affected the trading of its shares.

In November 2002, Judge John H. Gomery, j.s.c., approved the settlement of this class action. The settlement anticipates, among other things, that the class will be able to benefit on a pro rata basis from a fund established by the Defendants and totalling more than 27.25 million US dollars.

The claiming period for this case has now expired and this file is now closed. However, the Motion for authorization to institute a class action remains against Mr. Hasanain Panju.

This class action is led by Belleau Lapointe, S.A.

Chronology

November 2002

The Honourable John H. Gomery, j.s.c., approves a settlement that ends the litigation against some of the defendants including Cinar.

July 2000

Filing by Cinar and a number of its directors of their contestations.

March 2000

MEDAC files a Motion for Authorization to Institute a Class Action against Cinar and a number of its directors.