OTTAWA (Reuters) – Canada’s Supreme Court ruled on Friday that a class action lawsuit against Desjardins Financial Services in the aftermath of the 2008 financial crisis can proceed, upholding Quebec’s general criteria for class action lawsuits.
Ronald Asselin filed a class action lawsuit against Desjardins Financial Services Firm Inc in 2009 after being told he would not receive a return on an equity investment he made in the company in the wake of the 2008 crisis.
In the first judgment in this case, Asselin’s class action was dismissed. But the Quebec Court of Appeals overturned that decision. On Wednesday, the Supreme Court upheld the Court of Appeals ruling, saying the class action could proceed, although it limited the amount of damages sought.
Asselin accuses the company of not disclosing the risks associated with the securities.
The class action lawsuit against the company and its management seeks $1,000 in punitive damages for each company involved in the lawsuit and alleges that the company recklessly and incompetently planned and managed investments and employed improper financial strategies.
Desjardins did not immediately respond to a request for comment.
In Canada, the rules for the class action certification process are usually set by the province. Friday’s decision confirms that the hurdle for class action lawsuits to be approved in Quebec is quite low.
Reporting by Steve Scherer; Edited by Jonathan Oatis
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