Class Action Against Paramount Investments Inc. and Others
(February 17, 2022) - This class proceeding has now been discontinued on the instruction of the Representative Plaintiff as the prospect for recovery for class members is limited.
The two key defendants, Adeeb Azizi and Samir Sawhney, no longer have counsel, and it is understood that they have relocated to the United States. We have no information that they have assets that could be reached if this matter proceeded to trial and judgment, or that there is any reasonable prospect of financial recovery in this case.
The Alberta Court of Queen’s Bench has approved the Representative Plaintiff’s request for a discontinuance on a without costs basis, and the matter has been ended at the Court. The relevant court documents can be found below.
The Representative Plaintiff in this matter has instructed JSS Barristers to discontinue this claim as the prospect for recovery for class members is limited. Approval of this discontinuance, on a without costs basis, will be sought from the Court.
Stobbe v. Paramount - Certification Approved
The proceeding filed by Jensen Shawa Solomon Duguid Hawkes LLP against Paramount Investments Inc. (aka “Paramount Group of Companies”), Adeeb Azizi, Samir Sawhney, Bryan Serbu and others (the “Defendants”) has been certified as a Class Action by the Alberta Court of Queen’s Bench in Edmonton.
The case involves the sale of limited partnership units associated with two real estate developments in Edmonton – the Iron-Gate project and the Gateway Village II project. The Statement of Claim alleges that the units in question were both marketed and sold to investors to whom the Defendants were not permitted to sell the units without a prospectus. The Statement of Claim alleges that, in contravention of Alberta law, the units were sold to investors without a prospectus being issued.
The Statement of Claim alleges that the Defendants orchestrated a scheme whereby the Defendants misled those individuals to whom they were not permitted to sell the units in order to extract funds from them. Those funds have not been returned to the investors. The Statement of Claim also alleges that some or all of the Defendants benefited by earning commissions, fees, incentives or other rewards in connection with the sale of the limited partnership units.
The Class has been defined by the Court as:
"All persons, individuals, entities or corporations who remitted Funds to the Defendants, or any of them, to purchase Units or interests in the Real Estate Limited Partnerships Gateway Village II Limited Partnership ("Gateway") or Iron-Gate Acquisitions Limited Partnership ("Iron-Gate"), and who claim that no exemption applied or are uncertain whether an exemption applied under which the Defendants were permitted to sell those Units or interests to them without a prospectus pursuant to the provisions of National Instrument 45-106."
All investors who meet this definition are automatically included in the class. Anyone who wishes to opt-out of this class may complete the Opt-Out form linked to below.