TORONTO - Cathay Forest Products Corp. (TSX:V.CFZ, Stock Forum)says it has agreed to pay $1.9 million to settle a class action lawsuit filed by a group of shareholders.
The lawsuit alleges the company's financial statements for the third quarter of 2009 and the first two quarters of 2010 were false and misleading.
The company says the settlement must be approved by the Ontario Superior Court of Justice at a hearing on Nov. 22.
Cathay says the settlement is a compromise on disputed claims and not an admission of guilt on the part of the company.
The company, which formerly operated under the stock symbol (TSXV:CFZ), was delisted from the Toronto Venture Exchange in February 2012 after having been suspended from trading for a year.