Dumb DirectorsI lost a lot of money in the past couple weeks, but I don't believe that the OTPP is on the hook for $1.2 billion. No court would see it that way either. The threatened litigation is what magician calls misdirection. The real culprits are elsewhere IMO.
If I was a director right now, I'd be very nervous. The inclusion the solvency opinion in the purchase agreement was made at their insistence to placate bondholders. Coming as it did on the heels of a Supreme Court of Canada decision that reaffirmed their responsibility was exclusive to shareholders, they should have known better. Including the solvency opinion in the purchase agreement has brought ruin to shareholders. In short, because the directors were concern for the sensibilities of other stakeholders they were negligent in their responsibilities to shareholders. Not good.