TORONTO, May 9, 2012 – Rochon Genova LLP
has 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.
According to John Archibald, a lawyer with
Rochon Genova: “When a company repeatedly
highlights its strong governance practices to the investing public, revelations
of serious misconduct cause damage to the company’s reputation and, in turn, substantial
harm to its investors.”
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.
For more information, please contact Joel
Rochon at email@example.com or John Archibald