Edmonton-based payday lender, The Cash Store Financial Services Inc., says it has a preliminary deal to settle various class actions against the company.

The firm (TSX:CSF) announced Monday evening that it has entered into an agreement in principle to settle proposed class action proceedings against the company and certain former directors and officers relating to alleged disclosure violations that were launched last year by investors in Ontario, Alberta, Quebec and New York.

The proposed settlement, which is subject to court approval and various other conditions, would see the company’s insurers pay approximately $9.45 million. It includes no admission of liability by the company, or any of the settling defendants, and the company continues to deny any liability or damages.

The company also notes that there is no assurance that a definitive agreement will be reached and approved by all parties. The deal in principle covers all claims related to investments in the company’s common shares and senior secured notes acquired or disposed of between November 24, 2010 and February 14, 2014 (other than certain rights and claims of senior secured note holders under a note indenture dated January 31, 2012).

Last week, the firm said that it had been denied a license in Ontario under payday legislation. As a result, the company is not permitted to sell any payday loan products in Ontario, and it will not be eligible to re-apply for a lender’s license for 12 months.

The company also announced that it has appealed an order of the Ontario Superior Court of Justice declaring that its basic line of credit product is a payday loan. “There is no certainty that the appeal will be successful and it is possible that the company will be required to permanently close its Ontario operations,” it said.

Additionally, it has launched discussions with certain creditors and other stakeholders to address near term liquidity issues that have arisen. Again, it says there is no certainty that its near term liquidity issues will be resolved and, if resolved, on terms that are favourable to the company.