|Company||SNC-Lavalin Group Inc.|
|Claims||Misleading and deceptive conduct|
|Settlement Amount||CAD $110,000,000|
|Relevant Period||November 6, 2009 - February 27, 2012|
|Claim Deadline||May 13, 2019|
In 2012, two class actions were filed in the Ontario and Quebec Superior Courts (collectively, the Court) alleging that from November 6, 2009 to February 27, 2012, SNC and the other defendants misrepresented or failed to disclose information about the making of, and accounting for, improper payments for contracts related to projects in Canada and elsewhere. As a result, plaintiffs alleged, SNC’s financial reports and other public statements during this time were materially false and misleading.
On February 28, 2012, SNC announced that it had begun an Audit Committee investigation into $35 million of such payments, and the price of SNC securities fell dramatically in response. On November 23, 2018, the Court approved the parties’ proposed settlement for CAD$110 million, which is currently being administered.
The recovery for this settlement includes non-Canadian investors. Unlike some Canadian class actions, recovery here is not limited to country residents. It covers “all persons, wherever they may reside or be domiciled” who acquired SNC common stock on the Toronto Stock Exchange from November 6, 2009 through February 27, 2012 and held their shares through the latter date. The broader definition reflects the fact that unlike other Canadian companies, SNC is not dual-listed in the U.S. and there was no U.S. securities class action covering some investors.
This is the fifth largest securities settlement in Canadian history. At $110 million, it significantly exceeds the one day market loss on February 28, 2012, when the alleged wrongdoing was publicly disclosed. That day the price of SNC shares fell about 21% from C$48.37 to C$38.43 – or C$9.94 – on trading volume of 7.25 million shares, resulting in a market loss of $72.1 million. Contrast this with the fourth largest settlement – $154.7 million in 2013 involving Sino Forest Corp. – where the market loss following public disclosure of the alleged fraud was $428.9 million, about 2.8 times the recovery amount. In short, SNC investors will likely receive a high percentage of eligible losses than in the last mega-settlement and should be sure to participate.
The deadline to submit claim forms are due on May 13, 2019 in order to recover funds from the $110 million settlement involving SNC-Lavalin Group (SNC). FRT can manage the class action recovery process from start to finish providing maximum returns for investors. Contact us today to help you with this case and other global settlements.
For more details on this settlement or all global shareholder litigation monitoring and recovery opportunities, please contact your FRT representative or email us at firstname.lastname@example.org.
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