Supreme Court of Canada (partially) upholds judgment against former Livent auditor
On December 20, Canada’s highest court released a hotly anticipated decision that is almost certainly the final act in the more than 20 year saga of a formerly pre-eminent theater company, Livent Inc. and an accounting fraud by its senior management. This was a fraud that, among other things led to the 2009 criminal conviction of Livent founders, Garth Drabinsky and Myron Gottlieb. Livent’s Receiver Manager sued former Livent auditor, Deloitte & Touche for issuing clean audit opinions and a comfort letter to potential investors in the face of numerous red flags indicating fraud by senior management that it said Deloitte ... [more] Full article
Failure to register share transfer doesn’t mean that it didn’t happen: Supreme Court of Canada denies oppression remedy claim
The Supreme Court of Canada in Mennillo v. Intramodal Inc. held that a small, closely held corporation’s failure to comply with some of the requirements under the Canada Business Corporations ... [more] Full article
Shotgun Clause Robs Shareholders of $750k
The BC Court of Appeal has upheld an arbitrator’s finding that triggering a shotgun clause terminated the selling parties’ interest in a joint venture, thereby eliminating their entitlement to an ... [more] Full article
Shareholder spat leaves plaintiffs with no remedy, and an order to pay $2.7 million in costs
The case of Harris v. Leikin Group Inc. provides another illustration of the messy, and costly, fallout that can occur when there is a dispute within a successful family business. [more] Full article