Replies to post #97481 on BioAmber Inc fka BIOAQ

[lineItemVeto]

ONLY PAYOFF $4.34 million to secured creditors for a pittance of the MEGA-MILLION dollar DEBT

[trader59]

BioAmber did not pay a plug nickel in that settlement. Were the documents even read????

Here, this is from the shareholder's lawyer:

1I.INTRODUCTION

Lead Plaintiff Chad Zubriski and named plaintiff George Deratnay (“Plaintiffs”) submit this memorandum in support of the Stipulation and Agreement of Settlement datedDecember 18,2019 (“Stipulation”), filed with the Court herewith. Plaintiffs and Jean-François Huc and Mario Saucier(“Settling Defendants” and, with Plaintiffs, “Settling Parties”) have reached a proposed settlement of this securities class action (“Settlement”) through which Settling Defendants will pay a total of $2.25 million into an escrow account established by Lead Counsel. Plaintiffs seek an order: (1) preliminarily approving the Settlement as fair, reasonable, and adequate; (2) preliminarily certifying a Settlement Class; (3) preliminarily approving the plan of allocation; (4) preliminarily approving the notice; and (5) establishing a schedule for the steps necessary to seek final approval of the Settlement.Unless otherwise defined herein, all capitalized terms have the same meaning as set forth in the Stipulation.

Since the filing of this Action, BioAmber Inc. (“BioAmber” or the “Company”) has been delisted from the exchanges on which it traded. The partner in the venture that makes up substantially all of BioAmber’s assets sold its interest back to BioAmber for one Canadian dollar. BioAmber filed for bankruptcy, initially aiming for a reorganization. But it was unable to attract an investor who valued it as a going concern, and the Company liquidated itself. Even BioAmber’s liquidator has now been relieved of duty. BioAmber now has no money –literally –to pay Settlement Class Members’ claims, other than through its insurance.

The Settlement recovers $2.25 million for Settlement Class Members, a substantial amount by any measure. It is an excellent result considering not only BioAmber’s financial condition, but also the difficulty Plaintiffs would have proving this case. Courts recognize that litigating securities class actions is inherently difficult and uncertain. This case would be harder than most. BioAmber no longer has any employees it can compel to sit for depositions. The relevant employees almost all reside in Canada, beyond this Court’s subpoena power. With no simple, cost-effective way of securing witnesses’ testimony, litigation would be egregiously complex and time-consuming. The Court should find that the Settlement warrants preliminary approval.

The Court should also preliminarily certify a Settlement Class. This is a plain-vanilla securities class action of the type that courts consistently certify for settlement purposes. Plaintiffs and Counsel have adequately represented the Class to secure the Settlement despite the real risk of no potential recovery. The Court should also approve the Plan of Allocation because it treats all Settlement Class Members equally and does not show preferential treatment to Plaintiffs. Finally, the Court should approve the notice because both its form and content satisfy all applicable requirements.

The Court should grant preliminary approval to permit notice to the Class, which will allow it to consider the Settlement on a fuller record at a final approval hearing.

[whitegold3]

CptChemtrail, you nailed it, you hit it out of the park!

[LETSWIN2020]

Good point.