The most widely read magazine for Canadian lawyers
Issue link: https://digital.canadianlawyermag.com/i/50813
lot of litigation against directors and of- ficers," he says. In the mining sector, for example, low prices have already sent distressed companies like Lundin Min- ing Corp. into the arms of their stron- ger counterparts. In that case, the buyer, HudBay Minerals Inc., has already seen challenges — as well as a competing proposal — from shareholder Jaguar Financial Corp. "That could well end up in litigation," says Weinczok. How successful shareholder lawsuits will be is another question, of course. As Weinczok notes, litigation — or the threat of it — is a common tactic by ac- tors in distress or who are on the hunt for strategic advantage. "Certainly, what people are doing now is [they're] scour- ing around looking for opportunities," he says. One area where that's likely to be particularly true is class action lawsuits. In the United States, companies have already found themselves the subject of a wave of actions by shareholders who claim they were duped by executives. In Canada, Siskinds LLP announced re- cently it had filed a class action on behalf I've seen people as anxious about financial conditions as we're seeing today." — BARRY FRASER CLARK WILSON LLP of investors in U.S. insurer American International Group. The lawsuit tar- geted the company's disclosures about its credit default swaps, moves the law firm alleges caused massive losses to Ca- nadian investors. "What I have seen is that litigation is getting busier," says Neil Finkelstein of Blake Cassels & Graydon LLP. "When money gets tight, people want to get their money, so they sue for it." But how lucrative lawsuits end up being is anoth- er question. "Whether they'll succeed is Untitled-2 1 2100 Scotia Plaza, 40 King Street West, Toronto, Canada M5H 3C2 © 2008 Cassels Brock & Blackwell LLP. Cassels Brock and the CB logo are registered trade-marks of Cassels Brock & Blackwell LLP. All rights reserved. "I don't think a different issue," he says. "It depends on what management knew or ought to have known. No one knew this was coming." Finkelstein, who often defends compa- nies against class action suits, adds that many cases are lawyer-driven. "They get a big headline, and most of them go no- where," he says, noting that it has become increasingly common for Canadian class action lawyers to piggyback on lawsuits '' launched in the United States. "The U.S. counsel are essentially part of the team in the Canadian case." In the AIG case, however, Siskinds lawyer Dimitri Las- caris says there is no American involve- ment. "We do our cases independently," he says. A key question for business litigators, of course, is the future of the Big Three North American automakers. Where there is consensus, though, is that the While Bay Street struggles to get the credit crunch crisis under control, one law fi rm has seized the moment to help its lawyers better serve clients. As reported in the Financial Post, October 22, 2008 Our Credit Response Team is a multidisciplinary group of lawyers who understand the current market forces and are assisting clients in dealing with the resulting challenges and pursuing the potential opportunities. '' For more information, contact privateequity@casselsbrock.com www. C ANADIAN Law ye rmag.com JANU AR Y 2009 59 12/12/08 12:56:16 PM