Home Capital, Canadian regulator settle allegations of misleading shareholders
Lender, 3 ex-staff to pay over C$30m; stock posts biggest gain in 5 weeks
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HOME Capital Group Inc and three former executives agreed to pay more than C$30 million (S$31.4 million) to reach settlements with regulators and investors over allegations the Canadian lender misled shareholders about mortgage fraud. The stock posted its biggest gain in five weeks.
Home Capital and the executives will pay C$12 million and cover C$500,000 in costs to the Ontario Securities Commission (OSC), the Toronto-based lender said in a statement after market hours on Wednesday. The firm is also making a C$29.5 million payment to settle a class-action lawsuit filed after the shares plunged, which includes C$11 million paid in the proposed OSC deal, according to the statement. Home Capital expects to fund almost all of this through available liability insurance.
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