Replies to post #128892 on BioAmber Inc fka BIOAQ

[trader59]

Seriously, BioAmber wasn't involved in that settlement. Their insurer was...

This is from the plaintiff's (shareholders'/claimants') lawyer describing the state of BioAmber when they were asking for the settlement to be approved:

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.

[Gold prospector]

Great point!