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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
Siskinds LLP and Paliare Roland Rosenberg Rothstein LLP: Notice of Settlement Approval in the Gammon Gold Inc. (N.K.A. AURICO GOLD INC.) Securities Class Action

LONDON, ONTARIO and TORONTO, ONTARIO -- (Marketwire) -- 12/12/12 --

This notice is to everyone who acquired securities of Gammon Gold Inc. ("Gammon", now known as AuRico Gold Inc.) from Underwriters in Canada pursuant to Gammon's Short Form Prospectus, dated April 19, 2007 (the "Prospectus"), and to everyone who acquired securities of Gammon on the TSX during the period from October 10, 2006 to August 10, 2007 (the "Class Members").


Please note: This is a summary notice, produced for publication purposes, announcing Court approval of the settlement reached in this litigation. A long form notice, containing additional detail, is available on the Administrator's website: or counsel's website:


In February 2008, the Plaintiff commenced an action in the Ontario Superior Court of Justice (the "Court") against Gammon and some of its officers and directors (the "Gammon Defendants") as well as the underwriters of Gammon's Prospectus (collectively, the "Defendants"). The Plaintiff alleged that this Prospectus, and certain other of Gammon's public filings, contained misrepresentations about the gold equivalent ounce production at Gammon's principal mining property.

Since that time, the litigation has been vigorously contested. The Court has certified the claims of persons who purchased Gammon securities in Canada from the underwriter defendants pursuant to the Prospectus dated April 19, 2007 ("primary market purchasers") as well as the claims of persons who purchased Gammon securities over the TSX in the period between October 10, 2006 and August 10, 2007 ("secondary market purchasers"). At the time the Settlement was reached, the certification of the secondary market purchasers' claims remained subject to further appeal by the Gammon Defendants.

On October 5th, 2012 the Parties executed a settlement agreement (the "Settlement") to resolve this litigation. The Settlement provides that Gammon pay CAD$13,250,000.00 (the "Settlement Amount"), including all of the Plaintiff's legal fees, disbursements, taxes, and administration expenses. In return for the Settlement Amount, the Defendants will receive releases and the class action will be dismissed. The Settlement is a compromise of disputed claims and is not an admission of liability, wrongdoing or fault on the part of any of the Defendants, all of whom have denied, and continue to deny, the allegations made against them.

A complete copy of the Settlement is available on the website of Siskinds LLP (along with Paliare Roland Rosenberg Rothstein LLP, "Class Counsel"): or from the Administrator at the coordinates below.

On December 4, 2012, the Court approved the Settlement and declared that it is fair, reasonable, and in the best interest of the Class.

The Court also awarded Class Counsel legal fees, expenses, and applicable taxes in the amount of CAD$3,745,775.00 ("Class Counsel Fees"). As is customary in these cases, Class Counsel conducted the class action on a contingent fee basis, meaning that Class Counsel funded the expenses of the litigation and was not paid as the matter proceeded. The amount awarded as Class Counsel Fees includes CAD$161,350.00 as reimbursement for amounts spent by Class Counsel in the conduct of the class action. The remainder of this amount, net of applicable taxes, represents Class Counsel's only compensation for conducting the class action. Class Counsel Fees will be deducted from the Settlement Amount before it is distributed to Class Members. Expenses incurred or payable relating to approval, notification, implementation, and administration of the Settlement ("Administration Expenses"), will also be paid from the Settlement Amount before it is distributed to Class Members.


The Court has appointed NPT RicePoint as the Administrator of the Settlement. The Administrator will oversee the claims and opt-out processes (described below) and will distribute the Settlement Amount. Class Members may obtain additional information about the Settlement and a copy of the Claim Form by contacting the Administrator or visiting the Administrator's website. The Administrator's contact information appears below.

Class Members who wish to receive compensation from the Settlement Amount must mail or otherwise submit a completed Claim Form (which may be obtained from the Administrator) and all supporting documents to the Administrator no later than March 13, 2013 (the "Claims Bar Deadline").

Class Members who do not opt out (as discussed below) and who file a valid Claim Form prior to the Claims Bar Deadline will be paid a pro rata share of the balance of the Settlement Amount, following deduction of all fees, expenses, and taxes. The long form notice contains complete instructions on how to make a claim to receive compensation from the Settlement Amount and an explanation as to how the Settlement Amount will be distributed.

All Class Members will be bound by the terms of the Settlement unless they exclude themselves from the Class ("opt out"). Class Members who do not opt out will not be able to make or continue any other claim or legal proceeding in relation to the matters alleged in the Action against the Defendants, or any other person released by the Settlement. Class Members who do not want to be bound by the Settlement must opt out. However, Class Members who opt out of the Settlement will be barred from making a claim and receiving compensation from the Settlement Amount.

If you wish to opt out of this Settlement you must submit a fully completed Opt-Out Form AND the documents identified therein to the Administrator no later than February 11, 2013 (the "Opt-Out Deadline").

For further information regarding the terms of the Settlement, allocation of the Settlement Amount, filing a claim under and/or opting out of the Settlement, or to obtain a Claim Form or request to opt out, visit the Administrator's website: or contact the Administrator by calling: 1-866-432-5534.

The law firms of Siskinds LLP and Paliare Roland Rosenberg Rothstein LLP are counsel to the Plaintiff in the class proceeding, and can be reached at:

Siskinds LLP                       Paliare Roland Rosenberg Rothstein LLP   
680 Waterloo Street                155 Wellington St West 35th Floor        
London, ON                         Toronto, ON                              
N6A 3V8                            M5V 3H1                                  
1-800-461-6166 ext. 2380                                                    

Please do not contact the Court with inquiries about the class action or the Settlement. All inquiries should be directed to the Administrator or Siskinds LLP.


Siskinds LLP
680 Waterloo Street, London, ON, N6A 3V8
1-800-461-6166 ext. 2380

Paliare Roland Rosenberg Rothstein LLP
155 Wellington Street West, 35th Floor
Toronto, ON
M5V 3H1

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