CINAR Corp. has reached an out-of-court settlement with Spanish animation company BRB Int’l SA. BRB filed a lawsuit in Quebec Superior Court in August 2000, alleging that CINAR was in breach of a letter of intent it had signed in November 1998 to purchase all of BRB’s shares for the equivalent of CAN$78 million. CINAR has agreed to pay BRB CAN$450,000.
CINAR president and CEO Stuart Snyder comments, "We are very pleased to have settled this large lawsuit for a comparatively small sum to the benefit of CINAR and our shareholders. Resolving outstanding litigation in a beneficial manner remains a priority for us, in particular in light of the recent offer to purchase CINAR."
In late October of this year, an investor group comprised of former Nelvana principles Michael Hirsh and Toper Taylor, along with TD Capital Canadian Equity Partners, entered into a definitive agreement to acquire all outstanding shares of CINAR. The transaction is subject to approval by the holders of two-thirds of the variable multiple voting shares and limited voting shares, with each class voting separately, as well as court approval and required regulatory approvals.