ONEnergy Inc. announced that it has succeeded in the trial of the litigation commenced by the company against certain former officers, directors, consultants and legal advisors of ONEnergy, formerly Look Communications Inc. (Look).

ONEnergy is the parent of retail supplier Sunwave Gas & Power. All dollar figures in this story are in Canadian $.

ONEnergy stated in a news release that, "On June 1, 2017, Justice Conway of the Ontario Superior Court of Justice granted judgment in favour of the Company as against the remaining defendants to the lawsuit, former CEO Gerald McGoey and his investment company Jolian Investments Inc. ('Jolian'), in the amount of $5,765,696, plus legal costs and interest, for breach of fiduciary duty in respect of the decision of the former board of directors of Look to award certain equity cancellation payments and performance bonuses to Look’s senior management and directors. The judgment also grants both a constructive trust and a tracing order over the damages owing."

ONEnergy stated in a news release that, "In her reasons for judgment, Justice Conway noted that the equity cancellation payments, which were made based on a share price of $0.40, and the compensation award paid to Mr. McGoey, were “not in the best interests of the company, preferred the interests of directors and officers over those of the corporation, and were not within a range of reasonable alternatives”. The defendants have 30 days to appeal the Court’s judgment."

ONEnergy stated in a news release that, "As noted in the Company’s April 1, 2016 press release, ONEnergy settled its claims against all other defendants in exchange for payments totalling $7.175 million."

ONEnergy stated in a news release that, "The trial judgment represents the conclusion of a lengthy chapter for the Company."

"We are very pleased that the Court arrived at the right result for both ONEnergy and its shareholders," said Stephen J. J. Letwin, Chairman of ONEnergy. "The Court’s reasons validate ONEnergy’s process in taking this matter to trial. With these issues decided, ONEnergy looks forward to continuing its focus on serving its customers, building its business and creating value for shareholders."

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