Siskinds LLP Announces the Filing of an Application for Leave to Pursue a $651
Million Class Action against National Bank of Canada in regard to Poseidon
Concepts Corp.; Siskinds LLP also Announces the Filing of a Proposed $51
Million Class Action against the Underwriters, including Lead Underwriter
National Bank Financial Inc., of Poseidon Concepts' January 2012 Share Offering
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:
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
Any inquiries regarding these proceedings may be directed to Denise Kinting
of Siskinds LLP. Ms. Kinting can be contacted by telephone (toll free) at
(800) 461-6166 (ext. 2360) or by email firstname.lastname@example.org.
SOURCE: Siskinds LLP
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