A class action for damages against Bombardier has been authorized by the Superior Court of Quebec, alleging “false and misleading” statements as well as breaches of the company’s obligation to provide occasional information regarding its 2018 forecasts.
The request for authorization of class action against Bombardier, its general director at the time Alain Bellemare and its chief financial officer, John Di Bert, was filed on February 14, 2019.
Bombardier said Monday that it intends to “vigorously defend” itself against the lawsuit against former executives, and that the company and the defendants deny any wrongdoing. She said she is weighing her options, including the possibility of an appeal.
The class action under the Quebec Securities Act concerns persons and entities who acquired or purchased Bombardier securities during the period from August 2, 2018 to November 8, 2018 inclusive.
The lawsuit highlights a “180-degree turn” in management reports between these two dates, regarding the proceeds from the sale of Downsview, having caused the value of Bombardier shares to fall.
The class action alleges that the drop in value of Bombardier’s securities caused significant damage to the representative of the group as well as to the members and is a “direct consequence of the false and misleading statements as well as the breaches of the obligation to provide information Defendants’ decision regarding the 2018 Directive.
“The Court has not yet considered and ruled on the merits of the allegations and Bombardier is currently reviewing the authorization decision and evaluating its options, including the possibility of an appeal,” Bombardier said in a press release on Monday.