MISSISSAUGA - KingsGate Wealth Management Services Limited, parent company to KingsGate Securities and KingsGate Insurance Group Limited, announced that it has amended an ongoing lawsuit against Industrial Alliance Securities Inc. surrounding the termination of several critical contracts with the firm. The lawsuit claims that the termination by Industrial Alliance was unlawful, and recently resulted in KingsGate having to cease all retail operations in December 2008. The lawsuit was originally issued by the Ontario Superior Court on October 4, 2007, and claims damages in excess of $3 million plus punitive damages.

"We are extremely disappointed with the way our partnership evolved with Industrial Alliance Securities", says Fred Roberts, CEO of the KingsGate Group of Companies. Roberts further adds that, "we were very proud that our small, independent firm was able to attract the attention of a huge company like Industrial Alliance back in 2005. Unfortunately, Industrial Alliance did not live up to the commitment we had expected, and we now have little choice but to close our doors."

Walter Bobko, Chief Operating Officer of KingsGate and former Vice President of Industrial Alliance Securities, adds that "I am deeply disappointed that it has come to this, as we have put so much time and effort into our firm over the past 10 years. This was so unnecessary."

KingsGate Wealth Management Services Limited: Founded in 1999, KingsGate Wealth Management Services Limited operates and manages a number of wholly owned subsidiaries in the Canadian financial services sector. Those wholly owned subsidiaries include KingsGate Securities Limited, KingsGate Financial Group Limited, and KingsGate Insurance Group Limited.