Redline Communications Group Inc. has reached an agreement in principle to settle the proposed class action lawsuit commenced in Ontario in September of 2010 against the Company, certain of its current and former directors and officers, and its former auditors. These claims remain unproven and the action has not received court approval.
The agreement in principle provides for the settlement, release and dismissal of all claims asserted against the Company, its former auditors and the individual proposed defendants.
Substantially all of the anticipated contribution to the settlement amount from Redline and the individual proposed defendants is to be funded through their insurance coverage, the remaining nominal amount being funded by the Company. The agreement in principle remains subject to final settlement documents and receipt of court approval. The settlement does not constitute any admission of liability by Redline or its officers, directors and employees.