In the spring of 2010, BioSyntech, a start-up biotechnology company, developing a cartilage-repair product, BST-Car Gel, filed a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act. In the subsequent bankruptcy proceedings, the intellectual property relating to the BST-Car Gel was sold. Vincent Blais, a former shareholder of BioSyntech, filed a motion for authorization to bring a class action on behalf of shareholders and security holders against BioSyntech’s former directors (the “Defendants”) for allegedly causing the company’s “avoidable” bankruptcy by failing notably to bring down the company’s burn rate and to undertake the necessary measures to secure the financing needed to complete a pivotal clinical trial (the “Motion”).… Continue Reading
In our post dated June 17, 2015, we discussed the March 26, 2015 decision of the Supreme Court of Canada denying leave to appeal from the judgement of the Ontario Court of Appeal (“ONCA”) in Kaynes v. BP Plc, 2014 ONCA 580 (“Kaynes”). Kaynes endorses a “transactional” test for securities fraud class actions in Canada and in so doing threatens to reverse Canada’s growing trend of Global Class Action certification. For the purposes of this article a “Global Class Action” is any securities fraud class action brought with respect to securities purchased on a foreign exchange.
A key element from our first post was a study by Professor Robert P.… Continue Reading
In Charlton v. Abbott Laboratories, Ltd., 2015 BCCA 26, the Court of Appeal for British Columbia overturned certification of a class action on behalf of all Canadian consumers of sibutramine, a weight-loss drug.
It was alleged that sibutramine increased the risk of cardiovascular events.
The Plaintiffs’ evidence on general causation was a trial that had demonstrated that sibutramine increased risks of cardiovascular events on patient with pre-existing cardiovascular disease.
However, evidence was adduced that sibutramine ought not be prescribed to patients with such pre-existing diseases. Therefore, the Appellants pleaded that there was no evidence that sibutramine causes or contributes to cardiovascular events among class members, i.e.… Continue Reading