SNC-Lavalin Could Face Class Action Suit
Announcement posted by DesignBuild Source 15 May 2012
Claiming that a scandal concerning overseas payments has led to plummeting stock prices, a Toronto-based law firm has filed a $1.5 billion class action lawsuit against Montreal construction and engineering firm SNC-Lavalin.
The heart of the case revolves around $35 million in undocumented payments and comes after allegations that former SNC-Lavalin vice president of infrastructure projects Riadh Ben Aissa, sent payments to companies affiliated with the Gadhafi family in Libya.
Law firm Rochon Genova LLP alleged that SNC-Lavalin, some executives and the board of directors breached various securities laws.
In a release, Rochon Genova said an investigation showed 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.”
Duhaime is no longer with the company, having resigned in late March after the allegations started to arise.
The lawsuit was filed on behalf of investors who bought shares in SNC-Lavalin between February, 2007 and February, 2012, excluding those living in Quebec. It was launched after SNC-Lavalin shares dropped precipitously in value after the company announced it was launching an investigation into the undocumented payments....