Ontario Superior Court of Justice, Court File No: CV-15-252CP
This securities class action relates to:
- the Defendants publishing core documents and making other statements containing alleged misrepresentations about (a)Miles Nadal’s executive compensation; (b) the Company’s accounting for goodwill under Generally Accepted Accounting Principals (“GAAP”); (c) the Company’s computation, presentation, and reporting of “EBITDA”; (d) the effectiveness of the Company’s internal controls; and (e) the Individual Defendants’ non-compliance with MDC’s Code of Conduct;
- the failure to disclose that the U.S. Securities and Exchange Commission (“SEC”) had opened a serious accounting irregularity investigation into MDC on October 5, 2014 in relation to some or all of the foregoing, until April 27, 2015; and
- the Individual Defendants engaging in insider trading during the Class Period while in receipt of material facts and/or material changes about MDC that had not been generally disclosed to the public, in violation of s. 76 of the Ontario Securities Act (“OSA“), the comparable provisions in the Securities Acts of the other provinces, and MDC’s own Code of Conduct.
The Plaintiff filed his Fresh as Amended Statement of Claim in June of 2016, with the motion for leave to commence a claim pursuant to s. 138.8 of the OSA scheduled to be heard on November 21-23, 2017.
Claim Issued: August 7, 2015
Class Period: October 28, 2013 to and including April 27, 2015
Leave to Proceed Record Served: November 17, 2016
Shareholders’ Canadian Counsel: Andrew Morganti and Matthew Stroh, Morganti Legal
Shareholders’ U.S. Counsel: Kathleen Donovan-Maher, Berman DeValerio & Pease LLP; and Samuel Rudman, Robbins Geller Rudman & Dowd LLP
Defendant MDC Partners’ and David Doft’s Counsel: Peter Howard, Stikeman Elliott LLP
Defendant Miles Nadal’s Counsel: Dana Peebles and R. Paul Steep, McCarthy Tétrault LLP
Defendant Michael Sabatino’s Counsel: Wendy Berman, Cassels Brock & Blackwell LLP
For more information about this action, or to obtain a copy of the most recent statement of claim, please contact the Firm at firstname.lastname@example.org.