Notice of Proposed Settlement of NovaGold Resources Inc. Securities Class
Actions
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<p>NEW YORK, <span class="xn-chron">May 24</span> /CNW/ -- The following statement is being issued by Labaton Sucharow LLP; Sutts, Strosberg LLP; and Camp Fiorante Matthews regarding the NovaGold Resources, Inc. Securities Class Actions.</p>
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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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IN RE NOVAGOLD RESOURCES INC.
SECURITIES LITIGATION ) MASTER FILE
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This Document Relates to: ) 1:08-CV-7041 (DLC) (JCF)
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All Actions )
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<p> Court File No.: CV-09-13833</p>
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ONTARIO
SUPERIOR COURT OF JUSTICE
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<p>BETWEEN</p>
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PHILIP ELLIOTT and WILLIAM KORMOS
Plaintiffs
and
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NOVAGOLD RESOURCES INC., et al.
Defendants
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Proceeding under the Class Proceedings Act, 1992
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<p> Court File No.: VLC-S-S-097866</p>
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<p> IN THE SUPREME COURT OF BRITISH COLUMBIA</p>
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<p>BETWEEN</p>
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LINDA M. ELLIOTT
Plaintiff
AND:
NOVAGOLD RESOURCES INC., et al.
Defendants
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Proceeding under the Class Proceedings Act, R.S.B.C. 1996, c.50
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SUMMARY NOTICE OF PENDENCY AND
PROPOSED SETTLEMENT OF CLASS ACTIONS
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<p>TO: ALL PERSONS AND ENTITIES THAT:</p>
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(1) (i) PURCHASED NOVAGOLD RESOURCES INC. ("NOVAGOLD") COMMON
STOCK ON THE AMERICAN STOCK EXCHANGE ("AMEX") DURING THE PERIOD
FROM OCTOBER 25, 2005 TO AND INCLUDING JANUARY 16, 2008 (THE
"CLASS PERIOD"); (ii) ARE UNITED STATES RESIDENTS THAT PURCHASED
NOVAGOLD COMMON STOCK ON THE TORONTO STOCK EXCHANGE ("TSX")
DURING THE CLASS PERIOD; OR (iii) ARE UNITED STATES RESIDENTS
THAT PURCHASED PUBLICLY TRADED NOVAGOLD COMMON STOCK BY ANY
OTHER MEANS DURING THE CLASS PERIOD (THE "U.S. CLASS");
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(2) ARE RESIDENTS OF BRITISH COLUMBIA AND PURCHASED NOVAGOLD
COMMON STOCK ON THE TSX OR AMEX DURING THE CLASS PERIOD (THE
"BRITISH COLUMBIA CLASS"); AND
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(3) PURCHASED NOVAGOLD COMMON STOCK ON THE TSX DURING THE CLASS
PERIOD AND ALL PERSONS IN CANADA WHO PURCHASED NOVAGOLD COMMON
STOCK ON THE AMEX DURING THE CLASS PERIOD (THE "ONTARIO CLASS").
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<p>YOU ARE HEREBY NOTIFIED, by the Orders of the <span class="xn-location">United States</span> District Court for the Southern District of New York (the "U.S. Court"), the Supreme Court of British Columbia (the "British Columbia Court") and the Ontario Superior Court of Justice (the "Ontario Court") (collectively, the "Courts") that the above-captioned actions have been certified as class actions for settlement purposes only and that a settlement for C$28 million (approximately US$26,600,000) has been proposed by the parties. Settlement Hearings will be held before the U.S. Court, the British Columbia Court and the Ontario Court. The U.S. Settlement Hearing will be held at the <span class="xn-person">Daniel Patrick Moynihan</span> <span class="xn-location">United States</span> Courthouse, Courtroom 11B, of the <span class="xn-location">United States</span> District Court for the Southern District of New York, 500 <span class="xn-person">Pearl Street</span>, New York, NY 10007-1312, at <span class="xn-chron">2:00 p.m.</span>, on <span class="xn-chron">September 10, 2010</span>. The British Columbia Settlement Hearing will be held at the Supreme Court of British Columbia at <span class="xn-chron">10:00 a.m.</span>, on <span class="xn-chron">August 6, 2010</span>. The Ontario Settlement Hearing will be held at the Ontario Superior Court of Justice at <span class="xn-chron">1:00 p.m.</span>, on <span class="xn-chron">August 4, 2010</span>. Each hearing will determine: whether the proposed settlement should be approved as fair, reasonable, and adequate; whether the Class should be certified and a class representative and class counsel be appointed; whether the request of Counsel for the U.S. Class in the U.S. Action should be approved for an award not to exceed C$5,975,000 (approximately US$5,700,000), or approximately 21.3% of the Gross Settlement Fund, plus interest, and reimbursement of litigation expenses incurred in connection with the prosecution of the U.S. Action in an amount not to exceed C$275,000 (approximately US$261,700), plus interest; whether the request of Counsel for the British Columbia Class and Counsel for the Ontario Class in the Canadian Actions should be approved for an award of attorneys' fees, not to exceed C$1,025,000 (approximately US$975,400), or approximately 3.7% of the Gross Settlement Fund, plus interest and applicable taxes, and reimbursement of litigation disbursements incurred in connection with the prosecution of the Canadian Actions in an amount not to exceed C$45,000 (approximately US$43,000), plus interest; and whether the U.S. Lead Plaintiff's request to the U.S. Court to reimburse it for costs and expenses it incurred in representing the U.S. Class should be approved in an amount not to exceed C$1050.90 (US$1,000). The Courts may change the dates of the hearings without providing another notice.</p>
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<p>IF YOU ARE A MEMBER OF THE CLASSES DESCRIBED ABOVE, YOUR RIGHTS MAY BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE NET SETTLEMENT FUND. If you have not yet received the full printed Notice of Class Actions and Proposed Settlement and a Proof of Claim and Release form ("Proof of Claim"), you may obtain copies of these documents by contacting the Claims Administrator:</p>
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NovaGold Resources Inc. Securities Litigation
c/o The Garden City Group, Inc.
Claims Administrator
PO Box 9299
Dublin, OH 43017-4699
(Toll Free) (866) 887-1306
www.novagoldclassaction.com
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<p>Inquiries, other than requests for information about the status of a claim, may be made to U.S. Lead Counsel, British Columbia Class Counsel, or Ontario Class Counsel:</p>
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U.S. Lead Counsel:
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Joseph A. Fonti, Esq.
Labaton Sucharow LLP
140 Broadway
New York, NY 10005
888-753-2796
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[email protected]
www.labaton.com
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British Columbia Class Counsel:
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Reidar Mogerman, Esq.
Camp Fiorante Matthews
#400-856 Homer Street
Vancouver, BC, Canada V6B 2W5
604-689-7555
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<p><a href="mailto:[email protected]">[email protected]</a></p>
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Ontario Class Counsel
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Jay Strosberg, Esq.
Sutts, Strosberg LLP
600 - 251 Goyeau Street
Windsor, Ontario N9A 6V4
877-214-4517
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[email protected]
www.strosbergco.com/novagold
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<p>To participate in the proposed settlement and be eligible to receive a recovery, you must submit a Proof of Claim postmarked, or received, on or before <span class="xn-chron">September 15, 2010</span>. If you are a Class Member and do not exclude yourself from the Class that you are a member of, you will be bound by the Judgments entered by the Courts. To exclude yourself from your Class, you must submit a request for exclusion postmarked, or received, on or before <span class="xn-chron">July 14, 2010</span>. (If you are a member of more than one Class, your exclusion request will automatically exclude you from each Class that you are a member of.) Any objections to the Settlement of the U.S. Action must be filed with the U.S. Court and served on U.S. Lead Counsel, on or before <span class="xn-chron">July 14, 2010</span>. Any objections to the settlement of the Canadian Actions must be submitted to the Claims Administrator, on or before <span class="xn-chron">July 14, 2010</span>. If you are a Class Member and do not timely submit an acceptable Proof of Claim, you will not share in the Settlement but you nevertheless will be bound by the applicable Judgments of the Courts.</p>
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By Order of the United States District
Court for the Southern District of
New York, the Supreme Court of
British Columbia, and the Ontario
DATED: May 24, 2010 Superior Court of Justice
For further information: Colin Holmes, Esq. of Labaton Sucharow LLP, +1-888-753-2796
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