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Public prosecutor takes aim at SNC-Lavalin's court bid for remediation deal

The headquarters of SNC Lavalin is seen Thursday, November 6, 2014 in Montreal. SNC-Lavalin Group Inc. reported a loss in its first quarter compared with a profit a year ago as its revenue edged lower.THE CANADIAN PRESS/Paul Chiasson

OTTAWA — Canada’s director of public prosecutions is firing a new volley at SNC-Lavalin that could hobble the company’s ongoing legal fight for a special settlement agreement over alleged corruption in Libya.

The prosecutor wants the Federal Court of Appeal to strike out a key element of the construction and engineering firm’s challenge of a ruling that went against the company.

Montreal-based SNC-Lavalin faces corruption and fraud charges related to business deals in Libya from 2001 to 2011.

The company unsuccessfully pressed the director of prosecutions to negotiate a “remediation agreement,” a legal means of holding an organization to account for wrongdoing without a formal finding of guilt.

In a March ruling, a judge tossed out the firm’s plea for a judicial review of the 2018 decision.

SNC-Lavalin is appealing the judge’s ruling, pointing to recent revelations from parliamentary committee testimony to bolster its arguments.

The Canadian Press