On February 14, 2019 an Application for Authorization to Institute a Class Action pursuant to Section 225.4 of the Quebec Securities Act was filed at the Superior Court of Quebec against Bombardier Inc., its CEO, Alain Bellemare and CFO, John Di Bert (collectively, the “Defendants”).
This securities class action arises out of the Defendants’ misrepresentations and failure to make timely disclosure of material facts concerning Bombardier’s 2018 Free Cash Flow (“FCF”) Guidance which Bombardier had stated to be: “Breakeven ±$150 million”.
On August 2, 2018, Bombardier published its 2018 Q2 MD&A wherein it reassured investors that it was “in line” to meet its objective of attaining its 2018 FCF Guidance of Breakeven ±$150 million. Moreover, Bombardier reassured its investors that the company was “in line” to achieve its 2018 FCF Guidance excluding the net proceeds of approximately $600 million from the Downsview Sale.
On November 8, 2018, Bombardier published its 2018 Q3 MD&A. In this MD&A, Bombardier included a “2018 Guidance Update” in which it modified the company’s FCF Guidance which previously excluded the net proceeds from the Downsview Sale. The FCF Guidance was modified as follows: “Breakeven ±$150 million including the net proceeds of ~$600 million from the sale of the Downsview Property”.
According to Bombardier, this reversal was necessary to offset the shortfall at Bombardier Transportation associated with a higher than planned working capital balance in the second half of the year. Bombardier’s about-face represents a $600 million shortfall in its FCF position which shocked the market and rocked Bombardier’s share price. On November 9, 2018, following the publication of the 2018 Q3 MD&A, the value of Bombardier’s securities plummeted.
The class action alleges that the drop in value of Bombardier’s securities caused significant damages to the Representative Plaintiff and Class Members and are a direct result of the Defendants’ misrepresentations and failure to make timely disclosure of material facts concerning Bombardier’s 2018 FCF Guidance. The monetary damages suffered by the Representative Plaintiff and Class Members are a direct result of the misrepresentations by the Defendants which artificially-inflated the price of Bombardier’s securities.
The “Class” and “Class Members” are comprised of the following, other than the Excluded Persons:
All persons and entities who acquired or purchased Bombardier’s securities during the Class Period and held all or some of these securities until November 8, 2018 inclusively;
The “Class Period” means the period spanning from August 2, 2018 to November 8, 2018, inclusively.
“Excluded Persons” refers to the Defendants herein, at all material times, members of their immediate families and their legal representatives, heirs, successors and/or assigns and the directors, officers, subsidiaries, and affiliates of Bombardier and its subsidiaries as well as any entity in which Bombardier has or had a controlling interest.
If you fit the criteria above, you are automatically included in the class. If you would like to receive updates on this class action, you may sign up for a mailing or contact us at firstname.lastname@example.org.