On June 29, 2012, the Ontario court approved the consolidation of actions commenced by Rochon Genova LLP and Siskinds LLP, as well as the discontinuance of the actions against certain individual defendants. Rochon Genova LLP and Siskinds LLP are co-counsel for the plaintiffs in the consolidated Ontario action. On September 19, 2012, Justice Perell of the Ontario Superior Court of Justice certified the Ontario action as a class proceeding, and appointed the Trustees of the Drywall Acoustic Lathing and Insulation Local 675 Pension Fund and 0793094 B.C. Ltd. as representative plaintiffs. The Ontario action has been certified on behalf of the following class:
all persons, wherever they may reside or be domiciled, who acquired securities of SNC during the period from and including November 6, 2009 to and including February 27, 2012 inclusive (the "Class Period"), except for:
(1) SNC's past and present subsidiaries, affiliates, officers, directors, legal representatives, heirs, predecessors, successors and assigns, and any spouse or child of the individual defendants in the Ontario action (the "Excluded Persons"); and
(2) those persons who are members of the class authorized in the Québec action, as described below.
Justice Perell also granted leave to the plaintiffs in the Ontario action to commence an action under the secondary market liability provisions of the Ontario Securities Act and the analogous provisions of the securities legislation of each other Canadian jurisdiction.
The opt-out deadline for this class action expired on May 8, 2013. The case is currently in the discovery phase. Further updates will be provided as the case progresses.
On May 9, 2012, Rochon Genova LLP commenced a global class action in Ontario on behalf of investors of SNC-Lavalin Group Inc. (TSX: SNC.TO and OTC: SNCAF.PK) alleging securities law violations by the company, its Board of Directors and certain officers.
The claim arises from allegedly unlawful payments made by SNC-Lavalin to members, associates, and agents of the Gaddafi regime to secure contracts for infrastructure projects in Libya. It alleges misrepresentations in SNC-Lavalin's filings, including that the company was a responsible corporate citizen with sound corporate governance practices and had adequate controls and procedures to ensure accurate disclosure and financial reporting. The allegations are not yet proven.
On February 28, 2012, the company's shares dropped over 20%, a market loss of over $1.5 billion. This steep decline followed a press release in which SNC-Lavalin revealed that its Board of Directors had launched an investigation into $35 million of undocumented payments. That investigation later found the company had made $56 million of improper payments to foreign agents and that those payments had been authorized by the company's former CEO Pierre Duhaime.
The lawsuit has been brought on behalf of all SNC-Lavalin investors, excluding residents of Quebec, who purchased securities of SNC-Lavalin between February 1, 2007 and February 28, 2012 or who purchased debentures of the company through the company's June 2009 prospectus offering.