The Financial Post reports in its Thursday edition that Barrick Gold has agreed to pay shareholders $140-million (U.S.) to settle a U.S. lawsuit related to the failed Pascua-Lama project, but its legal woes around the project are not over.
The Post's Peter Koven writes the company still has a less-advanced case to deal with in Canada, where lawyers are feuding among themselves over which firms should have "carriage" of the suit.
Legal experts said the U.S. settlement will likely have some impact on the Canadian suit, and that Barrick may push for a proportional settlement north of the border. Given that more than 70 per cent of Barrick shares trade in the U.S., a Canadian settlement by that definition would be much smaller.
However, the Canadian lawyers suing Barrick said there is no guarantee they would accept that sort of proportional deal. Jay Strosberg of Sutts Strosberg LLP in Windsor, Ont., said it would be "tough to justify anything less" than a proportional settlement. He said Barrick's U.S. settlement appears to be a "decent deal" for the company.
"Although the settlement was done without any admission of liability, it's a positive sign that the company wants to do right by shareholders," he said.
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