Scott+Scott LLP Announces Proposed Settlement of Class Action in the Oilsands Securities Litigation

NEW YORK, March 21, 2013 /PRNewswire/ -- The following statement is being issued by Scott+Scott LLP regarding the Oilsands Securities Litigation.

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

MARSHALL W. COLLINS, GARY DANNENBERG, THEODORE M. KOLER, AND ELMER WALKER, Individually and on Behalf of All Others Similarly Situated, Plaintiffs, v. OILSANDS QUEST INC. (f/k/a CANWEST PETROLEUM CORPORATION), et al., Defendants.       CLASS ACTION, CASE NO. 11 CV 1288 (JSR)

SUMMARY NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION

TO: ALL PERSONS WHO PURCHASED THE COMMON OR PREFERRED STOCK, OR OPTIONS, OF OILSANDS QUEST INC. (THE "COMPANY" OR "OILSANDS") DURING THE PERIOD MARCH 20, 2006 THROUGH JANUARY 13, 2011, INCLUSIVE (THE "CLASS PERIOD") AND WHO WERE DAMAGED THEREBY:

YOU ARE HEREBY NOTIFIED, pursuant to an order of the United States District Court for the Southern District of New York, that a hearing will be held on June 14, 2013, at 3:00 p.m., before the Honorable Jed S. Rakoff, at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl St., New York, New York, for the purpose of determining: (1) whether the proposed settlement of the claims of the above-captioned action (the "Action"), for the sum of $10,235,000.00 (the "Settlement Fund") in cash should be approved by the Court as fair, reasonable and adequate; (2) whether, thereafter, the Action should be dismissed with prejudice as set forth in the Revised Stipulation of Settlement dated March 4, 2013 (the "Revised Stipulation"); (3) whether the Plan of Distribution is fair, reasonable and adequate and should, therefore, be approved; (4) whether the application of Lead Plaintiffs for payment of costs and expenses (including, but not limited to, lost wages, if any) and of Plaintiffs' Lead Counsel for the payment of attorneys' fees and expenses incurred in connection with the litigation should be approved; and (5) whether the Court should grant certification of the Class.

This litigation is a securities fraud class action brought on behalf of those persons who purchased the common or preferred stock, or options, of Oilsands during the Class Period ("Class Members"), against Oilsands, certain of its current and former officers and directors, and McDaniel & Associates, the Company's petroleum consultant, for allegedly issuing materially false and misleading public statements about: (1) the value of the Company's mineral rights over more than a million acres of property in Canada's Alberta and Saskatchewan provinces; (2) the ability of the Company to physically and economically recover oil from its property; and (3) the accuracy of its financial statements.   Plaintiffs allege that these purportedly false and misleading statements inflated the price of Oilsands' stock, resulting in damages to Class Members when the truth was revealed.  Defendants deny all of Plaintiffs' allegations. 

If you purchased Oilsands common or preferred stock, or options, during the Class Period, your rights may be affected by the settlement of the Action.  If you have not received the Notice of Proposed Settlement of Class Action ("Notice") and a copy of the Proof of Claim and Release ("Proof of Claim"), you may obtain copies by writing to Oilsands Securities Litigation, Claims Administrator, c/o GCG, P. O. Box 9953, Dublin, OH  43017-5953 or on the internet at www.OilsandsSecuritiesLitigation.com.  If you are a Class Member, in order to share in the distribution of the net Settlement Fund, you must submit a Proof of Claim postmarked no later than June 24, 2013, establishing that you are entitled to share in the recovery.

If you desire to be excluded from the Class, you must submit a request for exclusion postmarked by May 31, 2013, in the manner and form explained in the detailed Notice referred to above.  All Class Members who have not requested exclusion from the Class will be bound by any judgment entered in the Action pursuant to the Revised Stipulation.

Any objection to the settlement must be mailed or delivered such that it is received by each of the following no later than May 31, 2013:

Court:

CLERK OF THE COURT
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Daniel Patrick Moynihan United States Courthouse
500 Pearl Street
New York, NY 10007

PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Moses Silverman
Andrew G. Gordon
Robyn F. Tarnofsky
1285 Avenue of the Americas
New York, NY 10019-6064
Attorneys for Defendants Oilsands Quest Inc., Christopher H. Hopkins, T. Murray Wilson, Karim Hirji, Garth Wong, Ronald Phillips, Gordon Tallman, Pamela Wallin, and John Read

BURNS, FIGA & WILL, P.C.
Jennifer M. Osgood
6400 S. Fiddler's Green Circle, Suite 1000
Greenwood Village, CO 80111
Attorneys for Defendants Thomas Milne and William Scott Thompson

VENABLE LLP
Matthew T. McLaughlin
David N. Cinotti
Rockefeller Center
1270 Avenue of the Americas, 25th Floor
New York, NY 10020
Attorneys for Defendant McDaniel & Associates Consultants Ltd.

SCOTT+SCOTT, ATTORNEYS AT LAW, LLP
David R. Scott
Beth A. Kaswan
Judith S. Scolnick
The Chrysler Building
405 Lexington Avenue, 40th Floor
New York, NY 10174
Lead Counsel for Plaintiffs

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE.  If you have any questions about the settlement, you may contact one of Plaintiffs' Lead Counsel at the address listed above.

DATED: March 5, 2013                          

BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

SOURCE Scott+Scott LLP