Vaughn, Ont.–based PACE Credit Union, along with counsel for investor claimants, says it intends to enter mediation, the credit union said in a release on Wednesday.
The news comes one month after the Financial Services Regulatory Authority of Ontario (FSRA) took control of the troubled firm following the resignation of several PACE directors and an investigation of alleged misconduct related to the sale of preferred shares to PACE members from July 2017 to June 2019.
Last week, FSRA named David Finnie as the credit union’s CEO.
“We have agreed to ask the court to expedite a process to resolve investor claims,” Finnie said in the release.
Ken Rosenberg, a partner with Paliare Roland Rosenberg Rothstein LLP, the firm representing claimants, said mediation will “assist investor claimants, many of whom are PACE Credit Union members, to ideally achieve an early resolution of their claims, while ensuring that there is an expedited process in place if it becomes necessary to go to court for a trial.”
A draft order detailing the process will be filed with a judge of the Ontario Superior Court of Justice, the release said.
Subject to court approval, mediation may begin early in the new year.