Canada’s Superior Court of Justice (Ontario) has ruled in the matter of costs regarding a class action trial conducted in 2004 against Danier Leather. The class action concerned information contained in a financial forecast issued by Danier during its initial public offering (IPO) in 1998. On May 7, 2004 the trial Judge concluded that two senior officers of the company had an honest belief at the time the IPO closed that the forecast prepared during the process could be achieved. The Judge further held that the forecast was, in fact, substantially achieved. However, it also found that a proper review had not been done on the date of closing and had it been done, the company should have concluded that the forecasted results were not achievable. The Judge ruled in favour of the plaintiffs and awarded damages to all Canadian shareholders who had purchased shares in the IPO.

Share this story: