1. The law firms of Strosberg Sasso Sutts LLP (formerly Sutts, Strosberg LLP) and Groia & Company Professional Corporation are counsel in a class action against Fraser Milner Casgrain LLP, BDO Canada LLP and others.
2. The class action concerns leveraged donations that were made in accordance with the terms of the Donation Program for Medical Science and Technology (the 'Program'). Each donor who participated in the Program was required to use their own funds for a portion of the donation and was provided with the option of financing for the balance of the donation.
3. Participants in the program were issued official charitable donation income tax receipts to permit them to claim an income tax credit for an amount that included the financed portion of the donation. The Canada Revenue Agency disallowed the income tax credits claimed by the donors and that decision was upheld by the Tax Court of Canada. The plaintiffs allege, among other things, that the defendants were negligent in designing, promoting and operating the Program.
4. The claim is on behalf of all persons, other than certain persons associated with the defendants, who participated in the Program in at least one of the taxation years of 2001, 2002 or 2003. The Program was marketed as a tax shelter that permitted participants to make leveraged donations to charities.
5. On May 30, 2013, the action was certified as a class proceeding. The class is defined as:
all persons, other than Excluded Persons, who participated in the Program in at least one of the taxation years of 2001, 2002 or 2003.
6. On October 1, 2013, the opt-out deadline expired. If you opted out of this action at that time you are not eligible to participate in the settlement. A copy of the notice of certification and opt-out deadline is available here.
7. On February 13, 2019, the plaintiffs and certain defendants entered into a settlement that is subject to Court approval. The Settlement Agreement may be reviewed here. The notice describing the settlement may be reviewed in English or French. In summary, certain defendants will pay $37 million in full and final settlement of all claims. The $37 million, less the lawyers’ fees, disbursements and taxes, the costs of administration of the settlement and the amount owed to the Class Proceedings Fund will be distributed to the Class in accordance with a plan of allocation, which may be reviewed here.
8. The lawyers for the Class will ask the Court to approve legal fees of thirty (30) percent of $37 million which is $12,543,000 million, including taxes, plus disbursements of approximately $430,000.00, plus taxes. Because the plaintiffs received financial support from the Class Proceedings Fund (“CPF”), the CPF is entitled to 10% of the net settlement fund, approximately $2,400,000.
9. The Settlement Approval hearing will be held on May 15, 2019, beginning at 10:00 a.m. at the courthouse, 361 University Avenue, Toronto, Ontario. The Court will consider objections to the settlement agreement by class members if their objections are sent in written form by no later than May 13, 2019 to:
Gregory D. Wrigglesworth
Kirwin Partners LLP
423 Pelissier Street
Windsor, ON N9A 4L2
Attention: Trinity Capital Class Action
10. If you have any questions, please call Strosberg Sasso Sutts LLP at 1.800.229.5323, extension 296.
11. If you would like to know more about how a class action works, click here.
This website provides general information to class members on a class action commenced against Trinity Capital Corporation and a number of other corporations and persons. The court will ultimately decide who will be included as a class member.