Canadian designer, manufacturer, and retailer of leather and suede clothing and accessories Danier Leather Inc. has announced that the Ontario Court of Appeal has allowed its appeal of a May 2004 judgment of the Superior Court of Justice (Ontario), concerning a class action concerning its initial public offering (IPO) in 1998.

In its unanimous decision, a panel of the Court of Appeal allowed the appeal on three separate grounds, set aside the trial decision and dismissed the class action.

The decision stated that the company had met its statutory disclosure obligations during the IPO process. It noted that the company's achievement of its financial forecast was a relevant consideration and it stated that greater deference should have been accorded the business judgment of the company's senior management.

Edwin Hawken, chairman of the board of Danier Leather, said, "We're delighted with this decision of Ontario's highest Court. It vindicates the conduct of the company, its directors and its senior officers during the IPO process."