Canada’s SNC-Lavalin faces $1.5-bn class action lawsuit
11 May 2012
Canadian engineering giant SNC-Lavalin Group Inc has been hit again by a class action lawsuit by investors who have sued the company's directors and officers seeking over $1.5 billion in compensation for misrepresentations relating to company's governing practices.
Rochon Genova LLP, a class action law firm launched the case yesterday in the Ontario superior court on behalf of SNC-Lavalin's investors excluding residents of Quebec, who lost their money due to the company's revelations about illegal payments in North Africa.
The Montreal-based engineering company had been working in Libya for the past 35 years. Its controversial relationship with Libya's ousted Gaddafi regime has triggered two class actions suits in the past three months.
''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,'' a statement issued by Rochon Genova said.
It further alleged ''misrepresentations in SNC-Lavalin's filings.'' The allegations are not yet proven.
The claim covers investors who purchased securities of SNC-Lavalin between 1 February 2007 and 28 February 2012, or who invested in the company's debentures through its June 2009 offering.
