This just in from the Montreal Gazette, I have an alert set up for SNC Lavalin: http://blogs.montrealgazette.com/2012/03/02/250-million-class-action-suit-launched-against-snc-lavalin/
Law firm Siskinds, Desmeules said today it has filed a proposed $250-million class action on behalf of investors against SNC-Lavalin Group Inc. and some of its current and former officers and directors for allegedly misleading investors and engaging in what it calls “unlawful activities” in Libya.
The request for class action certification, filed in Quebec Superior Court, “alleges, among other things, that the defendants made statements that were materially false and misleading in regard to SNC-Lavalin’s code of conduct, legal compliance, and internal controls,” said Siskinds, an Ontario law firm with an affiliate office in Quebec City.
“It is further alleged that SNC and certain members of its senior management team were engaged in unlawful activities in Libya during the Class Period (March 13, 2009 to Feb. 28, 2012), contrary to the defendants’ Class Period statements,” Siskinds said.
The filing aims to represent all those who acquired SNC securities from March 13, 2009 to Feb. 28, 2012.
The court action follows an announcement by SNC earlier this week (Feb. 28) that its board of directors has initiated an independent investigation, led by its audit committee, into the facts and circumstances surrounding $35 million of expenses “relating to certain payments made in the fourth quarter of 2011 that were documented to construction projects to which they did not relate” and “certain other contracts.”
The company added that “the investigation’s current findings support the company’s accounting treatment of these payments,” and said, without any elaboration, that its “board of directors is taking steps to implement changes and further appropriate actions arising from the investigation.”
SNC also said in the statement that it has retained independent legal counsel for the investigation but will not confirm which law firm or lawyers are working on the mandate.
The allegations are very serious and come on the tail of ongoing investigations world wide into SNC activities.
Can’t be a very good day for Christy today. I hear AGT has some documentation up now as well…
***update, please head over to this followup post for a provocative look at allegations and scandals that have followed SNC around the world… and allegations of conflict of interest in the working relationship of Gwyn Morgan acting as Christy Clarks strategic advisor… while SNC is raking in the cash from BC contracts. http://lailayuile.com/2012/03/04/moral-hazard-is-when-they-take-your-money-and-then-are-not-responsible-for-what-they-do-with-it-gordon-gekko/