CANADA: Danier To Appeal Court Ruling
The case, heard in the Superior Court of Justice in Ontario, concerned the accuracy and disclosure of a financial forecast issued by the company during its initial public offering (IPO) in 1998.
In a verdict delivered on Friday, the court ruled that Danier CEO Jeffrey Wortsman and CFO Bryan Tatoff had not conducted a proper review of the forecast on the date of the IPO's closing.
It also ruled that, had a review been made, Wortsman and Tatoff should have concluded that the forecasted results were not achievable by the closing date.
According to Danier chairman Edwin Hawken, the company was "profoundly disappointed" with the verdict.
"The court decision will be vigorously appealed on the basis that it contains errors of law that should be reversed," Hawken said.
"We will seek to bring the appeal forward as quickly as possible."
An award of damages to Canadian shareholders in Danier has been deferred pending an appeal filing by the company.
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