Key Points:

• Settlement Approval:
  • Plaintiff seeks approval for a settlement with Gatos Silver, Inc., and others (the “Gatos Defendants”) amounting to USD 3 million (3,960,000 CAD).
  • The settlement also includes releases for former defendants without financial contribution from them.
  • The settlement was reached through arm’s length negotiations with the help of a mediator.
• Previous Settlements:
  • Earlier settlements include a C$1 million settlement with Tetra Tech Defendants.
  • Underwriters were previously included in a standstill and tolling agreement.
• Damages Estimate:
  • Estimated primary market damages range: USD 3.7 million to USD 7 million.
  • Estimated secondary market damages range: USD 7.5 million to USD 11.85 million.
• Plan of Allocation:
  • The plan follows statutory damages formula under section 138.5 of the Ontario Securities Act.
  • No objections were received regarding the plan, indicating its acceptance.
• Class Counsel Fees:
  • Fees requested: CDN 1.28 million, equating to 25% of the total settlement value.
  • This fee is within the acceptable range and reflects the complexity and risk involved in the litigation.
• Approval Justification:
  • The settlement is deemed fair, reasonable, and in the best interests of the class members.
  • The combined settlements recover approximately 20-33% of the estimated losses.
  • Class counsel’s fees and disbursements are also approved as fair and reasonable.

Conclusion:

The court approved the Gatos Settlement and the associated Plan of Allocation. Class counsel’s fees and disbursements were also approved, concluding that the settlement was achieved through fair negotiations and is beneficial for the class members.