The plaintiffs brought a motion for certification of a class proceeding and for leave to proceed with statutory claims for misrepresentation under the Securities Act against Celestica Inc. and its former executives.
The plaintiffs alleged misrepresentations regarding a 2005 restructuring, inventory, revenue, and GAAP compliance.
The court granted leave and certified the class action solely with respect to the alleged misrepresentations about the 2005 restructuring, finding a reasonable possibility of success.
Leave and certification were denied for the inventory, revenue, and GAAP claims due to a lack of evidentiary foundation.
The court also declined to certify the common law negligent misrepresentation claim, finding it did not satisfy the preferable procedure criterion.