SNC-Lavalin Group Inc. faces new legal troubles as a shareholder aims to launch a class action lawsuit in connection with the criminal charges against the embattled engineering firm.
Law firm Strosberg Sasso Sutts LLP has filed a proposed class action lawsuit in Ontario Superior Court that alleges the company failed to disclose soon enough that federal prosecutors declined to invite it to negotiate a remediation agreement.
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The allegations have not been tested in court.
The Montreal-based company is at the centre of a scandal enveloping Ottawa after the Globe and Mail reported the Prime Minister’s Office pressured former attorney general Jody Wilson-Raybould to steer prosecutors to hammer out a remediation agreement that would have averted a criminal trial.
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The legal action says the head of the federal prosecution service told SNC-Lavalin on Sept. 4 that she would proceed with fraud and corruption charges stemming from the company’s business in Libya.
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The court filing says the company did not inform investors until Oct. 10, when the share price dropped nearly 14 per cent.
The lawsuit seeks $75 million in damages for shareholders who acquired SNC-Lavalin securities between Sept. 4 and Oct. 10.
SNC-Lavalin did not respond immediately to requests for comment.
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