Global Learning Group Inc.
The Claim: This certified class action is brought on behalf of the approximately 40,000 Canadian taxpayers who participated in the Global Learning Group Inc. (GLGI) charitable donation program (the Gift Program) between 2004-2014. The Class excludes GLGI owners, employees and agents including the individuals who sold the Gift Program, and also excludes the individuals involved in the lead Tax Court case Mariano v. The Queen.
The Class Action was certified as a class proceeding by the Ontario Superior Court of Justice on June 26, 2019.
From 2004-2014, GLGI operated a charitable tax program called the Global Learning Giving Initiative. Canadian taxpayers made donations through the Gift Program – including cash and courseware donations – on the understanding that the donations would support underserved communities and entitle the taxpayers to valuable charitable tax credits.
By 2007, the Canada Revenue Agency was reassessing the participants’ tax returns, disallowing the tax credits claimed and charging interest and, in some cases, penalties.
In 2015, the Tax Court of Canada found that the Program was a “sham” perpetrated by GLGI. The courseware licence valuations that were used to support the charitable receipts were wrong, and that GLGI and its accomplices received approximately 90% of the cash donations intended for charities. The trust structure of the Program was also invalid.
This class action is brought against GLGI and other entities, together with the administrative, legal and accounting professionals who supported the Gift Program. The plaintiffs have commenced a class action to seek return of the cash paid into the Gift Program and to recover damages for the interest and penalties assessed.
The Class: All persons who participated in the Global Learning Gifting Initiative Charitable Donation program (“the Gift Program”), exclusive of the Defendants, their family members, employees, agents, assigns, parent or subsidiary or affiliated companies, and any person or entity who provided services to one or more of the Defendants in respect of the creation, promotion, marketing or sale of the Gift Program, including any sales agents or distributors, and exclusive of Juanita Mariano, Douglas Moshurchak, Sergiy Bilobrov, Melba Lapus, Lylyne Santos, the Estate of Penny Sharp, and Janice Moshurchak.
Our Partners: Klein & Schonblum Associates
Settlement Reached with Graham Turner
October 31, 2024: The Ontario Superior Court of Justice granted the Plaintiffs’ motion to approve the most recent settlement with the individual Defendant, Graham Turner.
The settlement with Mr. Turner resolves the class action against him. The class action continues to be pursued against the non-settling defendants, who are the Lawyer Defendants, the IDI Defendants and the Valuator Defendant.
Under the terms of the settlement agreement, Mr. Turner paid $200,000 and agreed to co-operate with the Plaintiffs in the ongoing litigation of the action against the non-settling defendants. In exchange, all of the Class’s claims against Mr. Turner have been released on a full and final basis. The liability of the non-settling defendants to the Class will exclude whatever proportion of fault (if any) the Court finds was the responsibility of Mr. Turner.
The settlement funds have been and will be used to pay various costs and legal fees associated with litigating this case, and there will be no distribution of money to the Class from this settlement. The Class Proceedings Fund is entitled to a portion of the settlement fund as required by law in exchange for the indemnification and disbursement funding that it provides.
Settlement Reached with Wise, Blackman LLP Defendants
March 14, 2022: The Ontario Superior Court of Justice granted the Plaintiffs’ motion to approve a settlement with the Defendant, Wise, Blackman LLP (Wise, Blackman).
Under the terms of the settlement agreement, the Wise, Blackman Defendants paid $500,000 and agreed to co-operate with the Plaintiffs in the ongoing litigation of the action against the non-settling defendants. In exchange, all of the Class’s claims against Wise, Blackman have been released on a full and final basis. The liability of the non-settling defendants to the Class will exclude whatever proportion of fault (if any) the Court finds was the responsibility of Wise, Blackman.
The settlement funds have been and will be used to pay various costs and legal fees associated with litigating this case, and there will be no distribution of money to the Class from this settlement at this time. The Class Proceedings Fund has been paid a portion of the settlement fund as required by law in exchange for the indemnification and disbursement funding.
The Court has approved this settlement agreement as being fair, reasonable, and in the best interests of the Class.
Details of the settlement can be found in the Court Order approving the settlement here.
Settlement Reached with MKW Defendants
August 19, 2020: The Ontario Superior Court of Justice granted the Plaintiffs’ motion to:
- amend the Statement of Claim to add Robert Kepes and Morris & Morris LLP as defendants;
- certify the case against Robert Kepes, Morris & Morris LLP, and Morris, Kepes & Winters LLP (collectively, the “MKW Defendants”) for settlement purposes;
- and approve a settlement with the MKW Defendants.
The settlement with the MKW Defendants resolves the class action against them, and only them. The class action continues to be pursued against ten other non-settling defendants.
Under the terms of the settlement agreement, the MKW Defendants paid $1,450,000 and agreed to co-operate with the Plaintiffs in the ongoing litigation of the Action against the non-settling defendants. In exchange, all of the Class’ claims against the MKW Defendants have been released on a full and final basis. The liability of the non-settling defendants to the Class will exclude whatever proportion of fault (if any) the Court finds was the responsibility of the MKW Defendants. The settlement funds have been and will be used to pay various costs associated with litigating this case, and there will be no distribution of money to the Class from this settlement at this time. The Class Proceedings Fund has been paid a portion of the settlement fund as required by law in exchange for the indemnification and disbursement funding. The Court has approved this settlement agreement as being fair, reasonable, and in the best interests of the Class.
Letters/Phone calls from CRA
We understand from class members that CRA has begun sending letters to and/or calling some GLGI program participants seeking to collect unpaid taxes.
Please be assured that resolving your tax issues with CRA will not affect your participation in this class action, or your right to recovery in the event of a settlement or judgment in favour of the class. Any issues or proceedings between you and CRA are separate from this class action.
If you need advice or assistance regarding your CRA reassessment(s), you should consult with your accountant or tax advisor. Class Counsel are acting on behalf of the class only in the class action. Class Counsel cannot provide advice to individual class members about their individual tax situations.
The Class Action has been certified
June 26, 2019: The Ontario Superior Court of Justice certified the Action as a National class proceeding on behalf of a class defined as:
All persons who participated in the Global Learning Gifting Initiative Charitable Donation program (“the Gift Program”), exclusive of the Defendants, their family members, employees, agents, assigns, parent or subsidiary or affiliated companies, and any person or entity who provided services to one or more of the Defendants in respect of the creation, promotion, marketing or sale of the Gift Program, including any sales agents or distributors, and exclusive of Juanita Mariano, Douglas Moshurchak, Sergiy Bilobrov, Melba Lapus, Lylyne Santos, the Estate of Penny Sharp, and Janice Moshurchak.
The Certification Order can be viewed under the “Documents” Tab. Formal notice of the certification of this action as a class proceeding was published and sent to the last known address of class members, where available. The Notices are under the “Documents” Tab.
The remaining Defendants intend to bring motions for summary judgment. The summary judgment motions will be scheduled to be heard in January 2026.
This action is funded by the Class Proceedings Fund. The Class Proceedings Fund will provide some funding for the costs of disbursements incurred in prosecuting the case, and will provide an indemnity to the Plaintiffs for any adverse cost awards made by the court. In exchange, the Fund will be entitled to receive 10% of the net proceeds of any judgment or settlement achieved for the Class.
Interest Relief Letters from CRA
CRA delivered letters to some class members to let them know that it has agreed to provide some relief from interest on the reassessed taxes based upon delays of the Appeal Division in 2014 and again from March 22 to September 2016.
If you have not made an application for Taxpayer Relief, you may not receive the benefit of this recent decision. You should consult with your accountant or tax advisor about this. This is a link to CRA Form RC4288 the Taxpayer Request for Relief form.
- Fourth Amended Statement of Claim
- Certification Order
- MKW Settlement Approval Order
- Jobin/JDS Settlement Approval Order
- Short Form Notice of Certification (EN)
- Avis Abrégé d’un Recours Collectif (FR)
- Long Form Notice of Certification (EN)
- Avis Long d’un Recours Collectif (FR)
- FAQs for Class Members
- Certification Order as against Graham Turner
- Denial of Certification in SK Piett action
- Wise, Blackman LLP Settlement Approval Order
- Long Form Notice re: Wise, Blackman LLP Settlement Approval (EN)
- Long Form Notice re: Wise, Blackman LLP Settlement Approval (FR)
- Short Form Notice re: Wise, Blackman LLP Settlement Approval (EN)
- Denial of Leave to Appeal in SK Piett Action
- Graham Turner Settlement Approval Order
- Short Form Notice re: Graham Turner Settlement Approval (EN)
What is a class action?
A class action is a special form of lawsuit in which one plaintiff brings a claim against one or more defendants based on allegations which are common to a group, or class, of people. In order for the action to become a class action, it must proceed through a stage known as “certification”.
Who brings a class action lawsuit forward?
A statement of claim is issued on behalf of a “representative plaintiff”. The representative plaintiff’s role is to work with class counsel to bring the action forward and to represent the class members in court.
What is certification?
In order for an action to proceed on behalf of the entire class, a judge must decide (among other things) whether the members of the proposed class have common issues, and whether a class action is the preferred way to resolve the issues. The process to decide these issues is known as the “certification motion”. If the judge is satisfied that the case meets all of the requirements for certification, he or she will issue an order which certifies the action as a class action.
Do I have to do anything to “join” the lawsuit?
No. If the lawsuit is certified, and you are included in the class as defined, you are automatically included in the lawsuit.
Once I am part of the class do I have to do anything?
No. We will work primarily with the class representative.
What if I do not want to be included in the lawsuit?
Those who do not wish to remain in the class will be given the option to opt-out by sending an opt-out form at the appropriate time to us.
What are the benefits of proceeding as a class action?
Certification as a class action will enable us to prove the facts in a single lawsuit rather than in numerous individual lawsuits. This has obvious benefits to the class members and to the courts.
How long does it take for a class action to be resolved?
There is no timeframe. We will move the case forward diligently but it can take a considerable period of time to reach trial.
Can a class action lawsuit be settled without going to trial?
Many class actions settle and thereby remove the need for a trial. However, we cannot predict with any certainty whether or not there will be a settlement in a given action.
What are the chances of winning the action?
The chances of “winning” can never be accurately predicted.
Will be liable for any costs or legal fees?
Class action lawsuits are typically brought on a contingency fee basis. This means that the lawyers will only be paid if the action is successful at trial or results in a settlement in favour of the plaintiffs. Legal fees would then be paid out of the settlement or judgment proceeds as approved by a judge.
Disbursements (i.e. out-of-pocket expenses, including expert reports) may be dealt with in one of two ways.
Most commonly, the lawyers will absorb the cost of disbursements. The lawyers may seek funding assistance from the Class Proceeding Fund, which may provide funding for disbursements if granted.
In some cases, disbursements may be funded by the class members, including the class representative. This typically occurs in smaller class actions brought on behalf of an organization or network of individuals where each member of the class is easily identifiable and known to the representative plaintiff. If the class action is successful, amounts advanced for disbursements are re-paid from the proceeds of any judgment or settlement to class members (and others).
Will I be liable for costs of the action if it is unsuccessful?
Only the class representative may be liable for costs of the common issues portion of the action if it is unsuccessful.
When can I expect to receive a payout from this class action?
A “payout” or an award for damages is never certain.
The action may settle or it may proceed to trial, at which time a judge will determine the amount of damages, if any, to which the class members are entitled to. Regardless, the amount of “payout” cannot be predicted, and we cannot predict when the action may settle or when the trial will conclude.
How will counsel keep me updated on the progress of the case?
If the lawsuit is certified as a class action, you will receive a formal notice from the court explaining the nature of the case and providing you with the opportunity to opt out if you wish. General information about the lawsuit will be posted on Sotos LLP’s website at https://www.sotosclassactions.com.
Where can I send any documents that I have that may be relevant to a class action?
We ask that you keep a copy of any documents, correspondences, records, invoices, receipts, etc. that you feel might be relevant to your individual claim in the class action. If there is a “payout,” this documentation may be required in order to support your claim for compensation.
It is not required that you send any documents to us at this time.