B.C. law firm Slater Vecchio LLP and Texas-based Scott & Scott LLP today announced that they in December filed a class action lawsuit against Telus International (Cda) Inc. (TSX:TIXT; NYSE:TIXT), alleging that Telus International and several of its officers made "misstatements" about the company's artificial intelligence (AI) offerings.
The lawsuit said that this breaches the B.C.'s Securities Act.
"As a result of Telus International's alleged failure to comply with its disclosure obligations, shareholders suffered a loss when the deep-seated issues, caused by the company's shift to AI, were disclosed in May and August 2024," the law firms said today in a statement.
Telus International has since rebranded as Telus Digital Experience. It is a separate corporate entity from Telus Corp. (TSX:T).
The news comes on the heels of another law firm suggesting that there could be a "pending" lawsuit against Telus International.
U.S. law firm Berger Montague said Jan. 9 that it is investigating what it described as "potential violations of the federal securities laws" and "securities fraud claims" on behalf of investors in Telus International.
Berger Monague's investigation is focused on whether the company and its senior executives misled investors about corporate financial performance, specifically related to AI offerings. The alleged miscommunication happened between Feb. 16, 2023, through Aug. 1, 2024, Berger Montague said.
The lawsuit filed by Slater Vecchio and Scott and Scott seeks compensation for those who traded Telus International shares within that same time period: Feb. 16, 2023, through Aug. 1, 2024, and held all or a portion of these securities at any moment between May 9, 2024 and Aug. 1, 2024.
"The investing public relies heavily on companies and their officers to fairly and accurately represent the affairs of the company," said Sam Jaworski, a partner at Slater Vecchio LLP.
"Companies that are found to have breached their duties owed to investors must provide compensation for the financial losses that they have caused."
BIV is reaching out to Telus International for a response to the class-action lawsuit.
