RE:Contingent Liability Lawsuit is Frivolous Posted below is the most recent statement by 3D capital, the major plaintiff.
Note that there are three defendants....NFG , Colin Kettell and PALI
Presumably, if 3D is successful, the cost of any awarded amount will be shared three ways
Note in yellow the correction to trial date..
Legal Actions of the Company
Pursuant to a share purchase agreement dated November 15, 2019, an aggregate of 13,500,000 common shares (the “Subject Shares”) of New Found Gold Corp. (“NFG”) to a third party purchaser at a price of $0.08 per share for aggregate proceeds of $1,080,000.
The Issuer believes that the purchaser was in possession of information material to the transaction that was not disclosed at the time. As a private company with restrictions on the transfer of the Subject Shares, NFG had to approve the proposed transfer, which it did by a consent resolution of its board of directors.
Accordingly, the Issuer subsequently commenced the legal action on March 10, 2020, against Collin Kettell, Palisades Goldcorp Ltd. (“Palisades”) and NFG (collectively, the “Defendants”) claiming rescission of the transaction or, in the alternative, damages in the approximate amount of $16,000,000 or the present value of the Subject Shares.
The Issuer has also made specific claims for (i) a declaration that Palisades and Collin Kettell, as shareholder or director and/or officer of NFG, have acted in a manner that is oppressive, unfairly prejudicial or unfairly disregarded its interests, (ii) a declaration that Palisades and Collin Kettell engaged in insider trading contrary to section 138 of the Securities Act (Ontario), (iii) unjust enrichment and (iv) interests and costs.
NFG filed a statement of defence in response to the Issuer’s statement of claim on June 12, 2020. Mr. Kettell and Palisades filed a statement of defence on June 18, 2020 and the action has now progressed through the production of documents and oral examinations for discovery stages. The Issuer amended its statement of claim to include direct claims of oppressive conduct on the part of NFG, and to increase the damages sought against all of the parties in respect of the Subject Shares to approximately $176,600,000.
The Defendants have served amended statements of defence. The parties have completed a second round of oral examinations for discovery related to the amendments to the pleadings. The parties completed a mandatory mediation on October 3, 2023. The action is now scheduled for a trial commencing on January 13, 2025.
It is not determinable whether the Company will be successful in its claim, or, if successful, the amount of damages that may be awarded, if any.