Southern China Livestock Inc.
This case has been certified as a class proceeding by the Court of Appeal for Ontario.
If you purchased units of Expedite 4, Inc. through the 2010 private placement, then you are a member of the proposed class and we would like to hear from you. Please ensure that you keep copies of your subscription agreement, and proof of purchase of the units.
We encourage class members to provide us with correct contact information, so that you receive notices and updates as this case proceeds. We will continue to update this website as well.
The class has been defined as follows:
all persons or entities who purchased investment units (“Units”) of Expedite 4, Inc. between March 29, 2010 and December 23, 2010, and who continued to hold any of the shares or warrants comprising the Units as of December 23, 2010, other than Excluded Parties where the Excluded Parties are:
(i) Schwartz Levitsky Feldman LLP (the Defendant), including its partners, employees, successors and assigns;
(ii) the officers, directors, employees, agents, legal representatives, subsidiaries, affiliates, predecessors, successors and assigns of Expedite 4, Inc., Southern China Livestock International Inc., or Southern China Livestock Inc., and any entity in which any of the foregoing have or had any legal or de facto controlling interest; and
(iii) Rodman & Renshaw LLC and Newbridge Securities Corporation (together the “Placement Agents”), including their officers, directors, senior management employees, predecessors, successors and assigns
If you are a class member and wish to provide us with updated contact information, please email us at email@example.com or call us at 1-855 204 4946.
Please note that the period for opting out of the class proceeding is over.
A copy of the Reasons for Decision of the Court of Appeal are available under the “Documents” tab, below. A copy of the lower court decisions denying certification are also available under the "Documents" tab below. Those decisions were reversed by the Court of Appeal, and leave to the Supreme Court of Canada was denied.
Nature of the Claim
On October 31, 2012, a claim was commenced against the Canadian accounting firm of Schwartz Levitsky Feldman LLP.
The claim alleges that Schwartz Levitsky Feldman LLP was negligent in failing to exercise the care, skill and diligence of a reasonably competent auditor of a public company, and that it breached its duty of care to investors by providing an unqualified “clean” audit opinion in respect of the Chinese operations of Southern China Livestock Inc., when, in fact, the financial statements were not a fair presentation of the business. Excalibur’s claim on behalf of the proposed class of investors is that none of the investors would have invested in the company but for their reliance on the clean audit report negligently prepared by Schwartz Levitsky Feldman LLP.
This claim is advanced on behalf of a proposed class of investors who purchased investment units in a U.S. company called Expedite 4, Inc. through a private placement financing in 2010. In total, investors paid USD $7,594,965 for investment units in Expedite 4, Inc., and the units are now worthless.
On March 29, 2010, Expedite 4, Inc. acquired a company which operated commercial hog farms in China in a reverse takeover transaction, and simultaneously engaged in the private placement financing aimed at raising USD $10 million.
The reverse takeover was intended to permit the Chinese company to instantly become a public entity in the U.S. The private placement financing was purportedly to grow the commercial hog farm operations in China, through the sale of shares and warrants in the company.
Expedite 4, Inc. is now known as Southern China Livestock Inc.
In fact, investors later learned that Southern China Livestock Inc. had little, if any, control over its hog farm operations, and the business was highly susceptible to theft and fraud. Notably, the sale of hogs in China was primarily in cash and the cash was handled by employees who maintained the funds in their own bank accounts. This fact, the claim alleges, should have been known to Schwartz Levitsky Feldman LLP, and would have precluded a clean audit opinion.
Pleadings are closed. Copies of the pleadings are available under the “Documents” tab. The parties have exchanged productions and examinations for discovery are scheduled for early 2018.
Last Updated January 2018
- Leave to Appeal to the Supreme Court denied June 8, 2017
- Appeal granted and class action certified December 6, 2016
- Motion for Leave to Appeal to Court of Appeal granted November 15, 2016
- Appeal Denied June 15, 2015
- Certification Denied July 8, 2014
- Certification Motion argued June 26-27, 2014
- Reply delivered October 1, 2013
- Statement of Defence delivered September 13, 2013
- Statement of Claim issued October 31, 2012
- Leave to maintain action pursuant to s. 28 of the Limited Partnership Act granted June 4, 2013.