Danier Leather Inc. to appeal against court decision
Danier Leather Inc is to appeal against Friday’s decision by the Superior Court of Justice (
Edwin Hawken, Chairman of the Board of Danier Leather, said: “We are all profoundly disappointed by this decision. The court decision will be vigorously appealed on the basis that it contains errors of law that should be reversed. We will seek to bring the appeal forward as quickly as possible.”
Danier said that the Judge concluded that Jeffrey Wortsman, president and chief executive officer and Bryan Tatoff, senior vice-president and chief financial officer, had an honest belief at the time the IPO closed that the forecast prepared could be achieved. The Judge further held that the forecast was, in fact, substantially achieved. However, the court found that a proper review had not been done on the date of closing. Had it been done the company should have concluded that the forecasted results were not achievable, the court said.
The Judge awarded damages to Canadian shareholders who purchased subordinate voting shares in the IPO. Payment of any damages will be deferred as the award and the judgment will be stayed by the filing of the appeal. The company said that if the award were paid today, the damages would be an estimated C$10 million.
