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Winnipeg Free Press - PRINT EDITION
Arctic Glacier to pay $13.75M in settlement of lawsuit
ARCTIC Glacier Income Fund has reached an agreement to settle the class-action lawsuit filed in Canada by unitholders of the fund.
The settlement calls for the Winnipeg-based packaged-ice company to pay $13.75 million, which will be entirely funded by Arctic Glacier's insurers. The fund is not admitting liability or making any monetary contribution.
The settlement remains subject to approval by the Ontario Court.
The class-action suit sought damages on behalf of all persons who acquired Arctic Glacier units between March 22, 2002, and Sept. 16, 2008, and who held some or all of these units on Sept. 16, 2008.
It named the fund and its trustees, its operating company Arctic Glacier Inc., and certain of its current and past senior officers and directors.
In the Ontario lawsuit, the plaintiffs claimed Arctic Glacier stated the packaged-ice industry was "very competitive," but later announced it was a subject of an antitrust investigation by the U.S. government.
The Ontario plaintiffs alleged their units declined in market value because of the allegations.
Over the years, Arctic Glacier has been the subject of a number of government, industry and investor lawsuits involving its business practices.
In 2011, the fund settled four lawsuits in Ontario and Alberta by direct purchasers of packaged ice and agreed to pay $2 million.
In 2009, a U.S. subsidiary pleaded guilty to participating in "a criminal, anti-competitive conspiracy."
Michigan's attorney general said Arctic Glacier agreed to pay a $350,000 fine. It was accused of conspiring with another ice company to assign customers in order to lead to potentially higher ice prices.
In 2011 Arctic Glacier resolved a class action with U.S. purchasers and a civil action in Wisconsin.
Arctic was recently delisted from the TSX and its units now trade on the Canadian National Stock Exchange (CNSX:AG.UN).
-- The Canadian Press / staff
Republished from the Winnipeg Free Press print edition February 9, 2012 B8
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