The Ontario Superior Court of Justice has dismissed a suit brought by a pair of Ontario-based penny stock promoters, Donald Shaxon and Jason Springett, against a B.C.-based promoter, Richard Kipping, who had hired them to promote a firm, VoIP-Pal.com Inc.
A Colorado-based stock transfer agency, Share Agent LLC, was also named as a defendant in the suit.
Shaxon and Springett were hired by Kipping in 2012 to promote VoIP-Pal.com in exchange for shares in the firm, among other things, according to the court decision published June 7.
The arrangement, which was negotiated via email, included three million shares in the company, which were initially transferred to an offshore brokerage account in Beliz, but were later transferred back on Kipping’s instructions.
“Shaxon and Springett say that they began to promote the shares in order to increase the share price. Kipping says that they did not. The alleged breaches are the subject of the lawsuit,” the decision says.
Rather than defending the suit, Kipping and Share Agent filed a motion arguing that Ontario does not have jurisdiction in the case.
The court agreed, ruling that the promoters agreed to the terms of their arrangement when Shaxon, Springett and Kipping were all in B.C. As a result, Ontario does not have jurisdiction in the case.
The court dismissed the case against both defendants.