Arnold Pizzo McKiggan Retained on Knowledge House Inc. Class Action
Arnold Pizzo McKiggan, a class action law firm in Halifax, Nova Scotia has been retained by former shareholders of Knowledge House Inc. (KHI) to investigate a potential class action over the losses suffered by KHI’s investors.
KHI was a Nova Scotia company specializing in the development of internet-based educational software.
KHI’s shares were primarily held by investors in Nova Scotia. Those shares were publicly traded. In March 2000 KHI’s market capitalization was more than $111,000,000. However, in September 2001 KHI’s shares stopped trading. KHI's shares became worthless resulting in significant financial losses to Nova Scotia investors.
The collapse of KHI lead to lawsuits by National Bank Financial Limited (NBFL) against former KHI shareholders and resulted in a series of counter-suits, counter-claims and third-party claims. Last year RCMP laid criminal charges against some former officers and directors of KHI.
A recent decision of former Supreme Court Justice David Gruchy of the Nova Scotia Securities Commission revealed that in May 2005 NBFL and NBFL employee Eric Hicks entered into a settlement agreement with the Nova Scotia Securities Commission relating to trading in KHI.
Justice Gruchy stated in his decision:
“Although the terms of the settlement agreement have not been revealed, it is clear from the evidence before me that the agreement contains admissions … on the part of NBFL and Hicks.”
Justice Gruchy's decision is the latest twist in the convoluted litigation that followed KHI's insolvency. It is the first time there has been any indication NBFL may have admitted it played a part in KHI's collapse.
Arnold Pizzo McKiggan has been retained by former Knowledge House Inc. shareholders. We have teamed up with Siskinds LLP and are currently investigating whether there are grounds for a class action on behalf of former shareholders of KHI.
If you were a shareholder of KHI, you may be entitled to compensation. For more information please feel free to contact us.