Asia Packaging Group shareholders file class action against Canada-based company, claiming it failed to secure control over Chinese subsidiaries, making it unable to operate or pay its bills and that shareholders' entire value of investment has been lost
April 30, 2014
– Jensen Shawa Solomon Duguid Hawkes LLP (JSS Barristers) has filed a class action proceeding against Vancouver-based Asia Packaging Group Inc. (TSX-V: APX), Robert Wilson, Brian Birmingham, Jin Kuang, Michael E.D. Raymont, George Dorin and Manning Elliott LLP.
The action is brought on behalf of shareholders who bought APX shares between April 26, 2011 and the halt of trading in the shares on November 6, 2013. JSS Barristers has filed a Statement of Claim in the Alberta Court of Queen's Bench in Calgary, as a national class action. A separate claim, for BC investors, has been filed with the British Columbia Supreme Court in Vancouver.
Prior to trading in APX's shares being halted, the company's sole material assets were wholly owned foreign companies in China. The Statement of Claim alleges that APX and its directors failed to secure proper control over those subsidiaries and their operations, including their boards of directors, corporate seals and records, and bank accounts. The Claim alleges that in the fall of 2103 APX lost complete control of its Chinese assets. As a result, the company can no longer operate or pay its bills. The claim further alleges that Class Members have lost the entire value of their investment.
This claim alleges that APX's former directors and auditors have breached their duties, and that they made misrepresentations regarding the true state of affairs of APX.
The Statement of Claim seeks damages for losses suffered by investors in the amount of $9,000,000, plus other relief including costs and interest.
JSS Barristers provides litigation services to both commercial and individual clients. The firm's lawyers appear at all levels of Court in Alberta and Canada. We act for substantial corporate entities as well as individuals and we take pride in our advocacy on behalf of each of our clients.