In July 2014, proceedings were commenced in the Ontario Superior Court of Justice, the Court of Queen’s Bench of Alberta and the Quebec Superior Court against Poseidon’s auditors, KPMG LLP. Among other claims, the plaintiffs in these actions allege that KPMG LLP failed to comply with applicable auditing and other professional standards in its audits and reviews of Poseidon’s financial statements, as a result of which the company’s assets, accounts receivable and revenues were materially overstated. The plaintiffs seek to represent all persons and entities that acquired Poseidon’s common shares or other securities on or prior to February 14, 2013, other than certain persons and entities affiliated with the defendants.
The Class Actions against Poseidon, Its Directors and Officers and Other Defendants
As a result of the CCAA proceedings of Poseidon, the class actions against Poseidon and its directors and officers have been stayed by Order of the Alberta Court of Queen’s Bench. The class actions against other defendants, including the underwriters, National Bank, KPMG and Peyto, have not been affected by the CCAA stay of proceedings. The plaintiffs have brought a motion to consolidate the class proceedings pending in the Ontario Superior Court of Justice against these defendants, which is currently scheduled to be argued before the court in late-April 2015. Also in April 2015, the plaintiffs will argue a motion before the Ontario Superior Court of Justice that seeks the Court’s permission to proceed with the claims against National Bank of Canada.