Class Action Against SNC- Lavalin Group Certified: Notice Of Certification And Authorization And Leave To Proceed With Statutory Secondary Market Misrepresentation Claims Granted By Ontario And Quebec Courts
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.
Subsequently, separate proceeding were commenced in Ontario and Quebec by Siskinds LLP and its Québec affiliate, Siskinds Desmeules.
On June 29, 2012, the Ontario court approved the consolidation of the actions commenced by Siskinds LLP and ROCHON | GENOVA LLP, as well as the discontinuance of the actions against certain individual defendants. The Ontario court approved a notice with respect to the consolidation and discontinuance. You may view a copy of the notice here: [English]. Siskinds LLP and ROCHON | GENOVA LLP are co-counsel for the plaintiffs in the consolidated Ontario action.
The action alleges that disclosure documents issued by SNC during the Class Period contained misrepresentations relating to, among other things, the adequacy of SNC’s internal controls, the compliance of certain of SNC’s financial statements with generally accepted accounting principles, and the compliance of members of SNC’s management with the company’s Code of Ethics and Business Conduct. It is further alleged that the defendants’ misrepresentations caused the price of SNC’s securities to become inflated, and that the class members suffered damage when the truth was revealed to the investing public. The action claims $1 billion in damages.
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.
On January 24, 2013, Justice Francoeur of the Québec Superior Court authorized the Québec action as a class proceeding, and appointed Jean-Paul Delaire as representative plaintiff. The Québec action has been authorized on behalf of the following class: all persons who acquired securities of SNC during the Class Period, who were resident or domiciled in the Province of Québec at the time they acquired such securities, and who are not precluded from participating in a Quebec class action by virtue of Article 999 of the Québec Code of Civil Procedure, except for the Excluded Persons. Justice Francoeur also granted leave to the plaintiff in the Québec action to commence an action under the secondary market liability provisions of the Québec Securities Act.
If you want to opt out of the class actions, you must do so by no later than May 8, 2013 in accordance with the instructions set out in the leave and certification notice above.