Magna International is an internal investigation into founder Frank Stronach’s history at the company in response to the Peel police investigation into sexual assault allegations against him.Matthias Schrader/The Canadian Press
Magna International Inc. has launched an internal investigation into founder Frank Stronach’s history at the company in response to his arrest on sex-assault charges.
The company told The Globe and Mail it has enlisted two external law firms to help conduct a “targeted review of historical records” dating back to Mr. Stronach’s time at the helm of the auto parts giant. Magna’s origins go back to the 1950s. Mr. Stronach sold his controlling shares in the company in 2010 and stepped down as chairman in 2012.
In June, Peel Regional Police charged Mr. Stronach, 92, with a total of 13 sexual-assault crimes allegedly perpetrated against 10 women. The charges include rape, sexual assault and forcible confinement in incidents alleged to have occurred in the Toronto area and York Region between 1977 and 2024. Mr. Stronach has said he is not guilty and will fight the charges, none of which has been tested in court.
On Wednesday, CBC reported that Mr. Stronach is facing additional charges, which The Globe has been unable to independently verify.
In a reply to questions about whether the company was reviewing its role, if any, in any alleged wrongdoing, Magna spokeswoman Tracy Fuerst said Magna started the review of records in response to the Peel police investigation.
“This review process is complicated with the passage of time (going back 40-50 years), but should relevant information be located, we will follow a strict protocol to respect the legal rights of all and co-operate with authorities,” Ms. Fuerst said in an e-mail.
To date, she said, the company’s internal document review has revealed one settlement of a harassment allegation against Mr. Stronach and Magna Entertainment Corp., which was reported in the press.
Although she did not identify the case she was referring to, there was media coverage of a lawsuit launched by a 21-year-old bartender at Magna Golf Club who sued Mr. Stronach and Magna Entertainment for wrongful dismissal in 2002, when Mr. Stronach was chairman of Magna. Nicole Will alleged Mr. Stronach approached her at the club’s restaurant, invited her to play tennis and asked for her phone number. He also allegedly called her at home twice.
In the suit, which was settled for an undisclosed amount, Ms. Will alleged she suffered from stress and anxiety as a result and was disciplined by her supervisor, who allegedly told her she alone bore the blame for any negative outcomes of giving her phone number to Mr. Stronach.
Brian Greenspan, a lawyer for Mr. Stronach, said in June, “This matter was resolved to the satisfaction of the parties more than 20 years ago.”
It is not clear how many relevant records exist within Magna given the passage of time.
Richard Leblanc, a York University professor and corporate governance expert, said most companies do not retain legal records – settlements and other documents – for more than seven to 10 years. This is based on the recommendations of legal advisers and bankers, as well as the practices allowed by regulators in Canada and the United States.
“It’s an interesting theoretical question: If the statute of limitations is unlimited for sexual assault in Canada … whether boards should begin retaining books and records that match that limitation period,” Prof. Leblanc said, speaking generally.
The allegations against Mr. Stronach “are alarming and, if proven true, completely contradict Magna’s core values and beliefs,” Ms. Fuerst said. Magna has a zero-tolerance policy when it comes to sexual harassment and other forms of misconduct, she added.
In response to follow-up questions, she said Magna has retained a “prominent Toronto litigation boutique” with expertise in the areas of harassment and investigations to provide support for its document review. The company has separately retained a criminal law firm to ensure it is meeting its obligations in co-operating with investigative authorities, she said. The Globe asked for the names of the firms, but the company did not provide them.
The first allegations against Mr. Stronach were formally laid on June 7, when he was arrested and charged with five criminal offences, including rape, sexual assault and forcible confinement. Later that month, he was charged with additional sexual-assault counts, bringing the total to 10 complainants.
Mr. Stronach is now facing four additional charges after three more women came forward, CBC reported. It said the charges involve alleged incidents in Toronto in 1981 and 1983 and in Gormley, Ont., in 1993, citing information from a clerk at a Brampton, Ont., courthouse on Wednesday.
In an e-mailed response to The Globe’s questions about Magna’s statements, another of Mr. Stronach’s lawyers, Leora Shemesh, said her client will not be arguing his case in the media. “The courtroom is where he will have the opportunity to unequivocally plead not guilty to all of the charges that are levelled against him,” she said.
The Globe reached out to Ms. Shemesh for comment on the report of the latest charges and did not hear back.
In the 1950s, Mr. Stronach moved to Toronto from Austria and founded the company that would become Magna International, one of the world’s largest auto parts manufacturers, which today employs 179,000 people in 28 countries.
Mr. Stronach’s next court appearance is scheduled for Oct. 7 in Brampton.