Sutts, Strosberg deal awaits OK from judgesSutts, Strosberg's investment in U.S. class-action securities lawyer Andrew Morganti appears to be paying off with the announcement that the firm has reached a $28-million cross-border settlement on behalf of investors in NovaGold Resources Inc. The settlement must still be approved by judges in Canada and the United States. NovaGold was represented by Gowlings lawyer Kelley McKinnon, a former deputy director of enforcement at the Ontario Securities Commission.The Sutts, Strosberg firm sued NovaGold in October, explained Jay Strosberg, who worked on the case along with Mr. Morganti. Mr. Morganti joined Sutts Strosberg last April after working at the U.S. class-action giant Milberg LLP and knows all about class actions, having been involved in lawsuits that won millions of dollars for plaintiffs.
The Sutts, Strosberg firm became involved in the suit after U.S. law firm Labaton Sucharow sued NovaGold in the United States, but a court there ruled it didn't have the "jurisdiction to deal with Canadian investors," Mr. Strosberg said. So his firm launched a parallel action in Canada on behalf of Canadian investors.
The claim, directed at the company and its officers and directors, alleges the defendants misrepresented that the Galore Creek mining project was "economically feasible when they knew or should have known that the construction of the Tailings Dam would cost substantially more than publicly disclosed figures."