SNC Lavalin settles shareholder class actions in Ontario and Quebec, to pay $88M
by The Canadian Press
The lawsuits were among the consequences of alleged payments made by SNC-Lavalin to Libya's Gaddafi regime to secure contracts for infrastructure projects in the African nation
MONTREAL—SNC-Lavalin Group Inc. says it has agreed to settle two class action lawsuits filed on behalf of shareholders in 2012 over allegations of misleading investors about its activities in Libya.
The company says it will contribute $88 million to the settlement of the cases in Ontario and Quebec.
The agreement is subject to court approval.
The lawsuits were among the consequences of alleged payments made by SNC-Lavalin to members, associates and agents of the Gaddafi regime to secure contracts for infrastructure projects in Libya.
The lawsuits were filed on behalf of SNC shareholders after its shares plunged in 2012 after the company announced an investigation into millions in undocumented payments and said its 2011 earnings would be less than expected.
The company says it has since initiated a series of significant changes and enhancements to reinforce its ethics and compliance procedures.