LONDON, Ontario & CALGARY, Alberta--(BUSINESS WIRE)--Siskinds LLP, Siskinds Desmeules and JSS Barristers today announced the filing of proposed securities class actions against KPMG LLP (“KPMG”) in Ontario, Alberta and Québec. KPMG was the auditor of a TSX-listed company, Poseidon Concepts Corp. (“Poseidon Concepts,” TSX:PSN).
KPMG certified that it had conducted audits of certain of Poseidon Concepts’ financial statements in accordance with auditing standards. Contrary to the picture painted in those financial statements, Poseidon was at all times in a precarious financial position. Following a series of revelations that Poseidon Concepts had massively overstated its revenues and assets, the market price of its shares plummeted by more than 95%. Poseidon Concepts has since filed for insolvency protection and its assets were sold for pennies-on-the-dollar.
The proposed class actions seek to represent all persons who acquired securities of Poseidon Concepts on or before February 14, 2013, and request damages totalling $651 million.
Commenting on the cases, Dimitri Lascaris, a partner with Siskinds LLP, stated “Canadian investors rely on gatekeepers—including auditors—to review and opine on the finances of Canadian companies in exchange for substantial fees. When reviews and audits fail to uncover reporting issues, the financial impact on investors can be devastating.”
If you acquired securities of Poseidon Concepts on or prior to February 14, 2013, please complete the online information form at: http://www.classaction.ca/joinaction.aspx?action=poseidon
Any inquiries regarding these proceedings may be directed to Denise Kinting of Siskinds LLP. Ms. Kinting can be contacted by telephone (toll free) at (800) 461-6166 (ext. 2360) or by email at denise.kinting@siskinds.com.
About Siskinds LLP
Siskinds LLP (http://siskinds.com/) is a full-service law firm headquartered in London, Ontario. In both 2010 and 2011, Securities Class Action Services, a unit of Institutional Shareholder Services (ISS), named Siskinds LLP the top Canadian law firm in its annual global ranking of the world’s 50 leading securities class action law firms. Siskinds was co-lead counsel in the Imax Securities Litigation, the first securities class action in which leave was granted to commence an action under Part XXIII.1 of the Ontario Securities Act and numerous major cases since. Siskinds was also the first law firm to secure certification of a class proceeding under the Class Proceedings Act, 1992.
About JSS Barristers
JSS Barristers (http://www.jssbarristers.ca) is a litigation boutique, located in Calgary, Alberta. With over 30 lawyers, JSS provides litigation services on substantial matters to corporate entities, professional bodies, public institutions and individuals, and has been counsel on numerous successful securities class actions and options backdating cases. JSS lawyers have been repeatedly recognized as leading counsel by Martindale-Hubbell, Lexpert, Benchmark Canada, Chambers Global and other rating agencies and legal publications.