Bre-X case finally comes to an end, years after investment scandal
CALGARY- One of the biggest cases of investment fraud in Canadian history has come to a close.
Bilked investors who lost billions of dollars in the Bre-X scandal have been waging court battles for years, in an effort to recover some of their money.
Tens of thousands of people were affected by the fallout back in 1997, when the Calgary-based company’s claims of a massive gold discovery in Indonesia were proven false.
The company’s CEO died in 1998, and its chief geologist was acquitted of charges of misleading shareholders and insider trading.
On Thursday, a judge signed a settlement agreement to give $5.2 million to shareholders, as part of a class action lawsuit. Bankruptcy trustees Deloitte & Touche Inc. has given up its outstanding lawsuits against former Bre-X Minerals executives, because there is no money left.
Nearly $3.5 million of the settlement will go to Canadian shareholders, with the rest going to investors in the United States.