An Ontario judge has certified a $1-billion class-action lawsuit against SNC-Lavalin on behalf of investors who saw the value of their investment in the company plummet following revelations of mysterious payments in North Africa.
The Montreal-based engineering and construction firm didn't oppose the certification in exchange for the plaintiffs withdrawing their original plans to seek punitive damages.
Dimitri Lascaris, one of the lawyers involved in the case, said certifications normally take years to achieve because of opposition from defendants, but the case reached this stage at perhaps record speed.
"I have done scores of class actions and I don't recall a case where certification was ever achieved this quickly," he said in an interview Thursday.
SNC-Lavalin also agreed to pay nearly $250,000 to advertise the notice of claim and to cover fees incurred for two plaintiff experts.
The company said it intends to "defend our interests vigorously" and noted the case is limited only to statutory claims under securities legislation, which caps damages.
The suit alleges that SNC-Lavalin violated securities law by misrepresenting that it had adequate controls and procedures to ensure accurate disclosure and financial reporting. The suit claims, among other things, that a 2009 prospectus offering $350 million of debentures failed to contain "full, true and plain disclosure of all material facts."
The claim arises from alleged payments made by SNC-Lavalin to members, associates and agents of the Gadhafi regime to secure contracts for infrastructure projects in Libya.
The allegations have not been proven in court.
