N.S. Health Employee Pension Plan at Heart of $1 Billion Alleged Securities Fraud

A six-figure hit for Nova Scotia's largest registered pension plan is at the heart of an alleged securities fraud case playing out in Texas that aims to recoup some of the $1 billion investors claim they lost, saltwire.com reported. The Nova Scotia Health Employee Pension Plan is the lead plaintiff in a proposed class-action case against engineering firm McDermott International, Inc. The pension plan for thousands of Bluenose health care workers says in court filings that it lost $318,682 U.S., or about $430,000 in today’s Canadian currency, when it bought common stock in McDermott between Jan. 24, 2018, and Oct. 30, 2018. “The crux of the … complaint is that defendants made misrepresentations and omissions regarding the true risks and costs of McDermott's May 2018 merger with Chicago Bridge & Iron Company,” Magistrate Judge Andrew Edison said in a recent decision from the U.S. District Court for the Southern District of Texas. The suit involves investors who acquired McDermott common stock between Dec. 18, 2017, and Jan. 23, 2020. Their complaint “alleges that McDermott and certain of its officers … defrauded investors who purchased or otherwise acquired McDermott common stock during the class period,” according to court filings. Read more.

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