- Bombardier (TSX:BBD.B) is out to defend itself against a class action lawsuit before the Superior Court of Québec
- The lawsuit focuses on its Restricted Share Unit Plan, adding, “Bombardier denies any wrongdoing”
- The RSUs were initially granted in November 2020, but after the sale of Bombardier’s transportation business segment in January 2021 a portion of the RSUs were proportionally cancelled
- Bombardier stock last traded at C$98.00 per share
Bombardier (TSX:BBD.B) is out to defend itself against a class action lawsuit before the Superior Court of Québec.
The plane maker explained in a news release that the lawsuit focuses on its restricted share unit plan (RSU) adding, “Bombardier denies any wrongdoing.”
The RSUs were initially granted in November 2020 with a vesting date (when benefits or options become available) set for November 2023. However, after the sale of Bombardier’s transportation business segment to Alstom in January 2021, a portion of the RSUs were proportionally cancelled.
The court partially authorized plaintiff Jérôme Gauthier to proceed with legal action against the company.
The court has yet to rule on the merits of the allegations. Of the seven causes of action put forward by the plaintiff against Bombardier and the individual defendants, the court only authorized two, with respect to the interpretation of its RSU plan.
The plaintiff has been authorized to represent those who were employed by Bombardier’s transportation business segment before January 2021 who signed a grant agreement with Bombardier for RSUs after September 2020.
Bombardier is currently reviewing the authorization decision and is considering the possibility of filing an appeal.
The company’s lawyers are busy also busy helping defend Bombardier in Québec’s highest court against another lawsuit, one that alleges former executives misled investors.
Bombardier designs, builds, modifies and maintains aircraft for business and defence. Its customers operate a fleet of about 5,000 aircraft across the world with support from 10 service centres across six countries.
Bombardier stock (TSX:BBD.B) last traded at C$98.00 per share and has risen 84.55 per cent since the year began.
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(Top photo: Bombardier)