The former CEO of a Canadian carbon credit firm has filed a $35.5 million counterclaim lawsuit against the company, alleging its current chief executive officer led a “complex history of bad-faith conduct which was perpetrated against him.”
Justin Cochrane is among a group of former executives accused by Carbon Streaming Corporation in its US$40 million lawsuit filed with the Ontario Superior Court of Justice in April. The Toronto-based company provides capital to carbon capture projects around the world via streaming or royalty agreements for carbon credits, which they sell to buyers or other investors looking to offset emissions.
Cochrane says he was ousted from the company and terminated effective Dec. 31, 2024.
In its April lawsuit, Carbon Streaming alleges Cochrane and others unjustly enriched themselves via fraud and breaches of fiduciary duty. He is also accused of misusing company funds to treat select employees and board members to lavish ski trips.
More than US$30 million of the total damages sought by Carbon Streaming is specifically focused on Cochrane.
None of the allegations in either lawsuit have been proven in court. Yahoo Finance Canada contacted Carbon Streaming for comment. No response was received in time for publication.
“The claims filed by Carbon Streaming are baseless and misleading,” Cochrane stated in a Sept. 17 news release from Toronto-based law firm Mathers McHenry & Co.
“The record will show that all of our decisions were reviewed and approved by the board, and that we consistently acted with the best interests of the company’s shareholders in mind.”
In his $35.5 million counterclaim filed with the Ontario Superior Court of Justice, Cochrane names Carbon Streaming CEO Marin Katusa, as well as board members Alice Schroeder, Olivier Garrett, and Marcel de Groot. The counterclaim notes these individuals have been sued jointly and as individuals.
“Mr. Katusa, Mr. Garrett, Ms. Schroeder and Mr. de Groot engaged in a coordinated campaign of oppressive and bad-faith conduct against Mr. Cochrane in order to advance their own self-serving interests,” the Sept. 17 news release stated.
“The primary purpose of this campaign was to shroud Mr. Cochrane in controversy and to cause damage to his professional reputation through the pursuit of abusive and bad-faith litigation,” the release continued.
“This litigation is an unfortunate attempt by Mr. Katusa and other members of the board to silence and discredit us, but we are confident the truth will prevail.”
On the Cboe Canada exchange, Carbon Streaming shares have risen about 34 per cent year-to-date. However, the stock remains well below its all-time high reached in 2021, when investors pushed clean energy valuations to dizzying highs.
