Manitoba Telecom Services Inc. (MBT.TO: Quote) announced that on February 11, 2012, the Manitoba Court of Appeal ruled in its favour on a lawsuit regarding one of its Manitoba pension plans.
The litigation was commenced by a group of plaintiffs consisting of unions and retirees in respect of events that occurred starting in 1996, in advance of the Company's privatization.
In dismissing all of the plaintiffs' claims, Manitoba's highest Court confirmed that the Company complied with all of its legal obligations and has no liability to the plaintiffs, Manitoba Telecom Services said.
Today, the plaintiff group asked the Supreme Court of Canada for permission to appeal this decision. The company said that it will challenge today's request vigorously.
The Supreme Court is expected to announce whether it will grant the plaintiff group leave to appeal in the second half of 2012. Should the Supreme Court agree to hear this appeal, the Company and its external counsel believe that the Supreme Court would simply affirm the decision of the Manitoba Court of Appeal, though any decision would not be expected until the end of 2013 or the first half of 2014. There would be no expected cash or accounting impact to the Company during such period, Manitoba Telecom Services noted.
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by RTT Staff Writer
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