TORONTO, Feb. 20, 2013 /CNW/ - Siskinds LLP today announced the filing in the Ontario Superior Court of Justice of an application against National Bank of Canada (TSX: NA).
The application seeks leave to commence a secondary market misrepresentation claim against National Bank of Canada pursuant to provincial securities legislation. National Bank of Canada is alleged in the proposed action to be an "influential person" (within the meaning of provincial securities legislation) in relation to a TSX-listed company, Poseidon Concepts Corp. ("Poseidon Concepts," TSX: PSN).
The market price of the shares of Poseidon Concepts plummeted by more than 95% within the last three months following a series of revelations that Poseidon Concepts had massively overstated its revenues in recent quarters. These revelations emerged within a year of Poseidon Concepts' $82.5 million stock offering in which National Bank Financial Inc., a subsidiary of National Bank of Canada, acted as the lead underwriter (the "January 2012 Share Offering"). Trading in Poseidon Concepts' securities was recently halted pursuant to an order of the Alberta Securities Commission.
The applicant in the Application against National Bank of Canada seeks to represent all persons who acquired securities of Poseidon Concepts on or before February 14, 2013, and requests on behalf of such persons damages totalling $651 million.
Commenting on the application, Dimitri Lascaris, a partner with Siskinds LLP, stated "Canada's banks have a lengthy history of aggressively promoting the securities of upstart issuers in the resource sector. Too often, the banks' promotional efforts result in handsome profits for the banks, but disaster for investors. Regrettably, the case of Poseidon Concepts is the most recent in a long list of such disasters."
Putative members of the class are advised that proposed class actions are currently pending in the Provinces of Alberta, Ontario and Quebec against Poseidon Concepts and certain of its current and former officers and directors. The class period in those actions is being extended through to February 14, 2013, and will therefore conform to the class period in the proposed class action against National Bank of Canada.
Siskinds LLP also announced today the filing in the Ontario Superior Court of Justice of a proposed class action against the underwriters of the January 2012 Share Offering. The proposed representative plaintiff in that action seeks $51 million in damages on behalf of all persons and entities who purchased Poseidon Concepts' shares in that Offering.
If you acquired securities of Poseidon Concepts on or prior to February 14, 2013, please complete the online information form at: http://www.classaction.ca/JoinAction.aspx?action=poseidon
About Siskinds LLP
In both 2010 and 2011, Securities Class Action Services, a unit of Institutional Shareholder Services (ISS), named Siskinds LLP the top Canadian law firm in its annual global ranking of the world's 50 leading securities class action law firms. Siskinds was co-lead counsel in the Imax Securities Litigation, the first securities class action in which leave was granted to commence an action under Part XXIII.1 of the Ontario Securities Act, and Siskinds has been lead or co-lead counsel in all Ontario securities class actions in which such leave was granted. Siskinds was also the first law firm to secure certification of a class proceeding under the Class Proceedings Act, 1992.
SOURCE Siskinds LLP