Home Capital to pay $30.5M to settle OSC and class-action matters
TORONTO — Home Capital Group (TSX:HCG) said it reached an agreement Wednesday to pay $30.5 million to settle Ontario Securities Commission and class-action lawsuit matters related to allegations of misleading disclosure.
“Home Capital will accept full responsibility for failing to meet its disclosure obligations to the marketplace and appreciates the importance of the serious concerns raised by the (OSC) with respect to continuous and timely disclosure,” said Brenda Eprile, chair of the Home Capital Board, in a statement.
“These settlements will enable us to move forward with regaining the confidence of our depositors and shareholders and creating value for all our stakeholders.”
In April, staff at the OSC alleged that three Home Capital executives broke the law in their handling of a scandal involving falsified loan applications several years ago. In 2015, the company severed ties with 45 brokers over the fraud allegations. Two of those brokers have been sanctioned by the Financial Services Commission of Ontario, while the other 43 have not.