Mine company's shareholders mulling class-action lawsuit over Mount Polley tailings pond breach

Not only does Imperial Metals face a mammoth cleanup bill for the Mount Polley mine disaster, now it faces a potential lawsuit from its own shareholders.

The law firm Siskinds LLP has announced the start of an investor class-action suit after Imperial’s share price plunged following the devastating tailings-pond failure on Aug. 4. The share price dropped by 40 per cent immediately after the mishap.

“The action is brought to recover losses suffered by persons who acquired common shares or notes of Imperial between August 15, 2011 and August 4, 2014,” the legal firm said in a release announcing the lawsuit.

Named are Imperial Metals Corporation, along with “certain of its directors, officers and related parties.”

Based in London, Ont., Siskind appears to have the track record to back up its intention to sue Imperial successfully.

“Its class actions team has recovered over $450 million for investors over the last 10 years,” reads the firm’s release.

Siskinds says it received the highest ranking of any Canadian firm three out of the last four years in an annual global ranking of the world’s 50 leading securities class-action law firms.

Meanwhile, engineers for Imperial are working to reduce the danger level by redistributing water below the failed tailings pond, moving water from Polley Lake to Quesnel Lake.

A wall of debris in the wake of the failure trapped water in Polley Lake, where water levels have dangerously risen about two metres.

By moving the water it is hoped to prevent the debris wall from collapsing under the water pressure, which would further complicate an already dangerous situation.

While early tests have determined the water is fit to drink, a water ban is still in effect, with no one exactly sure what lies ahead.

Al Richmond, chair of the Cariboo Regional District, told The Canadian Press that curious people visiting the area may be putting themselves at risk.

“We know that some folks have been quite curious and have been going in there,” said Richmond.

“Some folks don’t seem to realize we don’t want any activity on Polley Lake that might in fact cause that plug to breach.

“If there’s a potential breach and you’re on Polley Lake fishing, for example, you could find yourself in Quesnel Lake pretty quick and the outcomes may not be very pleasant,” said Richmond. “I would suggest it would be unlikely someone would survive that type of ride.”

Checkpoints and gates have been established to form a perimeter around the area.

Ten million cubic metres of water and 4.5 million cubic metres of silt were spilled after the tailings pond was breached, and fears persist about the continuing effects on drinking water, fish stocks and the region’s ecosystem.

iaustin@theprovince.com

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— with files from The Canadian Press

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