A petition filed in British Columbia is targeting Fredericton-based Vestcor Inc. and one of its senior executives, alleging their involvement in causing financial losses for investors across Canada. The accusations center around the company’s alleged manipulation of the value of a corporate merger between two technology firms, Exro Technologies and SEA Electric Inc.
Vestcor, which manages pension funds for New Brunswick public sector employees, was the majority shareholder in Exro Technologies and played a significant role in Exro’s merger with SEA Electric Inc. The court filing claims that Exro paid $300 million to acquire SEA Electric based on unrealistic profit projections, leading to inflated valuations and subsequent losses for investors.
The petition alleges that Vestcor and its vice-president of equities, Mark Holleran, orchestrated the merger to protect their investments in SEA Electric. However, these claims have not been proven in court, and Vestcor is yet to respond to the allegations.
Despite the legal action, Vestcor’s CEO, Sean Hewitt, stated that the impact on the company’s investment portfolios is minimal and has no significant effect on pensioners’ monthly income. Vestcor managed $23 billion in 2024, showing an increase from the previous year.
Vestcor, established in 2016, serves as the pension fund manager for various public sector employees in New Brunswick and manages other investment funds, including the University of New Brunswick’s endowment. Exro Technologies faced financial challenges and was delisted from the Toronto Stock Exchange after revealing substantial revenue discrepancies.
The lawsuit was filed by two shareholders, Bryan Irwin and Mike Zienchuk, with the potential for more shareholders to join the class-action suit. The petition suggests that Vestcor and Holleran may have acted in bad faith during the merger, leading to financial losses for investors.