TORONTO, Oct. 12 /CNW/ - George Glezos and Peter Jervis of Lerners, one
of Ontario's leading litigation firms, will be available for comment
concerning today's Supreme Court of Canada decision in the case of Kerr vs.
Danier Leather Inc. Mr. Glezos and Mr. Jervis of Lerners represented investors
who launched the class action, and argued the case before the Supreme Court
asking the Supreme Court to set a high standard of corporate disclosure of
material facts arising after the filing of a prospectus. This case represents
the first trial of a class action relating to civil liability for
misrepresentation in a prospectus under the Ontario Securities Act. The
decision is expected to have major impact on investors who want to bring class
actions for misrepresentations under a prospectus.
The long-running case involving clothing manufacturer and retailer Danier
Leather Inc. and its investors was heard by the Supreme Court of Canada on
March 20, 2007. Lerners LLP successfully represented the investors at trial,
but the Court of Appeal for Ontario reversed the judgment in December 2005.
On May 20, 1998, Danier closed its initial public offering (IPO) with a
prospectus containing a positive financial forecast for its fourth quarter.
The trial judge found that just before closing, Danier's management was aware
of sales results that undermined its forecast, but did not reveal this to
investors before the IPO closed. Management only issued a revised and
substantially lower financial forecast after closing, causing a sharp decline
in share price.
For further information:
For further information: or to arrange interviews: Mary Ann Freedman,
Freedman & Associates for Lerners LLP, Phone: (416) 868-1500, Email: