Summary

Re: Jastram Properties Ltd. v. HSBC Bank Canada (“HSBC”), BCSC Action No. S-162335 (the “Class Action”)

IMPORTANT NOTICE RE: CLASS ACTION SETTLEMENT

You have been identified as a potential Class Member in the Class Action, which is brought on behalf of the following class:

“The Class is comprised of all persons, other than the Defendant, who have provided funds to invest in the Tan Investment Scheme promoted by Virginia Tan before March 21, 2013, which funds went through the HSBC Tan Accounts, and who have received payments from the Scheme which are lesser in total amount than the total principal amount they invested (the “Class”).”

Class Counsel will apply to the BC Supreme Court for approval of a Settlement Agreement dated for reference June 19, 2024 (the “Settlement Agreement”) which settles the claims made in the Class Action against HSBC and provides for payment of settlement benefits to those who are eligible to claim under the settlement. A copy of the Settlement Agreement is available for review at www.virginiatanclassaction.com.

As part of the application, Class Counsel will also apply for approval for the payment of Class Counsel’s legal fees and expenses from the amount payable under the settlement.

ELIGIBILITY TO CLAIM

You will be eligible to claim under the settlement if all of the following conditions are met:

You provided funds to invest in the Tan Investment Scheme promoted by Virginia Tan before March 21, 2013;
The funds you provided to Virginia Tan before March 21, 2013, were deposited by Virginia Tan in one of the HSBC Tan Accounts;
You provided funds to invest in the Tan Investment Scheme after March 20, 2013; and
The total of all payments you received from the Scheme after March 20, 2013, whether as interest payments or as a return of money invested, is less than the total amount of funds you provided to invest in the Tan Investment Scheme after March 20, 2013.

If you made a claim under the settlement in the Virginia Tan Class Action, Jastram Properties Ltd. v. Virginia Mary Tan et al., BCSC Action No. S-162335, you will automatically be deemed to have made a claim under the settlement in this Class Action. If you did not make a claim in that settlement, you will be given notice on how to make a claim, in accordance with the terms of the Settlement Agreement.

SETTLEMENT ENTITLEMENT

If you are eligible to claim under the settlement, you will receive a settlement entitlement that is equal to

EITHER

(a) An amount equal to 25% of your Eligible Loss, calculated as the total amount you paid for investment in the Tan Investment Scheme after March 20, 2013, less (i) the total amount of payments you received from the Tan Investment Scheme after March 20, 2013, and (ii) any applicable amount of the payment you received from the Virginia Tan Class Action Settlement in BCSC Action No. S-162335, plus applicable interest on your Eligible Loss;

(b) Your proportionate share of $1,200,000 based on the proportion of your claim amount under paragraph (a) above to the total amount of claims made under the settlement;

less your proportionate share of the legal fees and expenses approved by the Court.

THE PROPOSED LEGAL FEES AND EXPENSES

Class Counsel will apply for approval of the payment of legal fees in the amount of 33 1/3% of the total settlement amount payable under the settlement, plus taxes thereon, plus disbursements (expenses) in the amount of $14,731.60, inclusive of taxes.

THE HEARING FOR APPROVAL OF THE SETTLEMENT AGREEMENT

AND THE PAYMENT OF LEGAL FEES AND EXPENSES

The Court must approve the Settlement Agreement and the payment of legal fees and expenses to Class Counsel. The Court will determine whether the Plan is fair and reasonable and whether the payment of the proposed legal fees and expenses is appropriate in the circumstances.

The approval hearing will take place on Wednesday, September 18, 2024 at 9:00 a.m. at the courthouse at 800 Smithe Street, Vancouver, BC. Class Members may attend the hearing.

The application for approval of the Settlement Agreement and payment of legal fees and expenses, and the supporting materials is available at www.virginiatanclassaction.com.

WHAT OPTIONS DO CLASS MEMBERS HAVE?

Class Members have the option of supporting or opposing the Settlement Agreement or the payment of the proposed legal fees and expenses. If you support and do not object to either the Settlement Agreement or the payment of the proposed legal fees and expenses, you are not required to take any steps at this time. If you intend to oppose the Settlement Agreement or the payment of the proposed legal fees and expenses, see the next section for instructions.

OBJECTING TO THE SETTLEMENT AGREEMENT

OR PAYMENT OF THE PROPOSED LEGAL FEES AND EXPENSES

Class Members are entitled to object to the proposed Settlement Agreement or any of its terms, or the payment of the proposed legal fees and expenses.

Objections must be made in writing in advance of the application for approval of the proposed Settlement Agreement and payment of the proposed legal fees and expenses by way of a letter or email. The letter or email objection must set out the names of the objector(s) and the specific basis for the objection.

The letter or email objection must be received by Class Counsel by 4:00 p.m. on Monday, September 16, 2024, by e-mail to mm@hbmlaw.com or mail or courier to Bennett Mounteer LLP, #400 – 856 Homer Street, Vancouver, BC V6B 2W5, “Attention: HSBC Class Action”.

The objections will be put before the Court. It will be up to the Court to decide at the hearing whether to permit Class Members to present their objections orally, if they wish to do so.

FOR MORE INFORMATION ABOUT THE SETTLEMENT AGREEMENT

Contact mm@hbmlaw.com or visit www.virginiatanclassaction.com.

This notice has been authorized by the Supreme Court of British Columbia

Do not contact the Court about this notice.