The class action law suit against Manulife Securities International Ltd. and Manulife Financial Corp. in connection with Portus Alternative Asset Management has been discontinued.

Class counsel asked for discontinuance of the class action after they concluded that the offer by Manulife Securities to acquire the interest of its clients who were referred to Portus by advisors licensed by Manulife Securities was “fair and reasonable”.

Class counsel has recommended that their clients accept the offer, which expires July 15, 2005.

The discontinuance was approved in Ontario Superior Court today, following an appearance by class counsel and Manulife legal representatives. The judge in granting the motion to discontinue said: “The record discloses exemplary corporate behaviour on the part of Manulife. I am satisfied that the offer made by Manulife is fair, reasonable and responsible.”

Clients who qualify for the offer by Manulife Securities have until the July 15 deadline to choose among three options — a principal-protected note, guaranteed investments, or cash — for their principal investment in Portus.