Windsor-based law firm Strosberg Sasso Sutts LLP has taken the first steps in filing a class action lawsuit against Quebec engineering company SNC-Lavalin Group Inc.
SNC-Lavalin is currently facing several criminal charges. The lawsuit alleges that the company failed to make stakeholders aware that federal prosecutors declined to invite it to negotiate a deferred prosecution agreement in relation to fraud and corruption charges they are facing.
According to Justin Smith, a lawyer at Strosberg Sasso Sutts, SNC-Lavalin received the information on September 4, but waited over a month to make it public.
"When this was ultimately disclosed by SNC on October 10, the price of the shares of SNC dropped dramatically," explained Smith. "So the shareholders were concerned that they were buying shares when SNC had this information. "
Smith said they are citing "failure to disclose material of change" as the basis of the lawsuit.
This is currently a proposed class action lawsuit and has not yet been certified by a judge. Smith said if they do become certified, the next step will be to find all the people who may have been affected by SNC-Lavalin's actions. He said the lawsuit is in too early of a stage to estimate how many stakeholders are involved.