Bombardier Inc. has announced its intent to vigorously defend itself in a class action lawsuit recently authorized by the Superior Court of Québec. The court has granted Plaintiff Denis Gauthier permission to pursue damages against the company under the Québec Securities Act (the “Authorization Decision”). Bombardier and the individual defendants firmly deny any wrongdoing.
At this stage, the court has neither heard nor ruled on the merits of the allegations underlying this class action. Bombardier is currently reviewing the Authorization Decision and assessing its legal options, including the possibility of filing an appeal.
This legal development follows earlier disclosures that, in February 2019, Plaintiff sought authorization to file a class action against Bombardier and certain former officers, Messrs. Alain Bellemare and John Di Bert. The allegations include accusations that Bombardier and the individual defendants made false and misleading representations and failed to timely disclose material facts concerning its 2018 guidance.
The class action has been authorized on behalf of “all persons and entities who acquired or purchased Bombardier’s securities during the period spanning from August 2, 2018, to November 8, 2018, inclusively, and held all or some of these securities until November 8, 2018, inclusively.”
This case underscores the complexities and challenges companies face regarding transparency and timely disclosures, particularly in the volatile aerospace industry where Bombardier operates. As the proceedings unfold, all eyes will be on how the company navigates this significant legal hurdle.