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Canadian Class Actions Monitor

Category Archives: Securities

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Silvercorp Metals: Ontario Court of Appeal confirms robust test for leave in securities class actions and affirms costs award

Posted in Appeals, Certification, Class Actions, Securities

Silvercorp Metals: Ontario Court of Appeal confirms robust test for leave in securities class actions and affirms costs award[1]

The Ontario Court of Appeal recently released an important decision in a securities class action that (1) summarized the law with respect to the “robust” statutory screening mechanism which plaintiff investors must meet, (2) affirmed a significant costs award against the unsuccessful investor. On August 24, 2016, the Ontario Court of Appeal released its decision in Mask v. Silvercorp Metals Inc. (“Silvercorp”),[2] an appeal from a refusal to grant leave to proceed to a secondary market class action. In the wake of the Supreme Court’s recent[3] decisions[4] in secondary market cases, the unanimous decision dismissing the appeal confirms that the robust screening mechanism of a leave to proceed motion permits weighing of competing factual and expert evidence.… Continue Reading

Setting Limits: The Supreme Court Confirms a Robust Gatekeeper Approach to Secondary Market Liability Actions

Posted in Appeals, Case Comments, Class Actions, Securities

In a much anticipated decision, the Supreme Court released its rulings in three Ontario securities class actions on December 4, 2015: Canadian Imperial Bank of Commerce v. Green, 2015 SCC 60 (“Green”). This trilogy of secondary market class actions has been discussed extensively in previous postings on this blog (see this blog’s discussion of the Ontario Court of Appeal decisions, in the Top Ten Appeals to Watch in 2015 and in the SCC Monitor after the appeals were argued at the Supreme Court).

Read more in the original post by our colleagues at Canadian Appeals Monitor, McCarthy Tétrault’s blog focusing on information and commentary on upcoming and recent Appeal Court decisions.… Continue Reading

Why Don’t Investors Care: Questioning the Value of Securities Class Actions

Posted in Certification, Class Actions, Securities

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

McCarthy Tétrault launches CyberLex blog

Posted in Securities

McCarthy Tétrault has just launched its twelfth blog, CyberLex, at http://www.canadiancybersecuritylaw.com. This blog discusses trends and developments in cybersecurity, privacy and data protection law in Canada and internationally; offers practical suggestions and insights on how these issues affect companies in a wide variety of industries; and provides guidance on how to address various challenges and opportunities created by technology and legislative developments.

Please visit the blog!… Continue Reading

Ontario Court of Appeal Turns Against Cross-Border Securities Class Actions

Posted in Class Actions, Securities

In the recent decision of Kaynes v. BP, PLC, 2014 ONCA 580, the Ontario Court of Appeal stayed a proposed secondary market securities class action on the basis of forum non conveniens.  Writing for a unanimous Court of Appeal, Sharpe J.A. found that Ontario could assume jurisdiction over claims by Canadian residents who purchased their shares on foreign exchanges.  Nevertheless, he held that Ontario should decline jurisdiction on the basis that foreign courts were better positioned to decide claims arising from transactions on foreign exchanges.

Kaynes puts a damper on Ontario’s recent enthusiasm for global securities class actions.  Whereas the province once seemed destined to become a “Shang-ri-la” for cross-border litigation, global claims will now be subjected to closer scrutiny as courts ponder whether the matter should be adjudicated elsewhere.… Continue Reading

Halliburton: Deepening the Divide Between Certification of US and Canadian Securities Class Actions

Posted in Class Actions, Securities

The following post by Laurie Baptiste on the Canadian Appeals Monitor blog may be of interest to readers of this blog: Halliburton: Deepening the Divide Between Certification of US and Canadian Securities Class Actions

 

Everyone has been talking about the recent decision from the US Supreme Court in Halliburton Co v Erica P. John Fund Inc (Halliburton) and its rulings regarding the “fraud on the market” doctrine in US securities class action litigation (previously reported on here and here). In Canada, many are likely wondering about the potential impact of the decision here.  However, what this case shows is a deepening divide between the certification process of such actions in the US and Canada.… Continue Reading

Deemed Reliance in the U.S. Supreme Court

Posted in Case Comments, Class Actions, Securities

The following post on the Canadian Securities Regulatory Monitor blog may be of interest to readers of this blog: Deemed Reliance in the U.S. Supreme Court.

On June 23, 2014 the United States Supreme Court issued its much-anticipated decision in Halliburton Co. v. Erica P. John Fund (“Halliburton”), as issuers and investors in the U.S. (and Canada) wanted to see if the landscape for securities class actions in both countries would be fundamentally changed. The U.S. Supreme Court made only an uneventful change in U.S. law and so our Courts are not likely to see a sudden shift of class actions against cross-listed companies to Canada.… Continue Reading

2013 Trends in US Securities Class Actions

Posted in Class Actions, Cross-Border, Securities

A recent report reveals some interesting trends in US securities class actions.  “Securities Class Action Filings – 2013 Year in Review”, a report by Cornerstone Research and the Stanford Law School Securities Class Action Clearinghouse (available HERE) notes that although plaintiffs filed 9% more securities class actions in 2013 than were filed in 2012, the 2013 total is still 13% lower than the average from 1997 to 2012.

The report’s authors look at a variety of related statistics:

There are now fewer listed companies to sue, given the decline in the number of companies listed on the NYSE and NASDAQ (down 46% since 1998); There is a recent increase in initial public offerings on major US exchanges (more in 2013 than in the five years previous); and There is an increase in larger companies undertaking initial public offerings.… Continue Reading

The Final Word (Again?) On Limitation Periods for Securities Class Actions

Posted in Case Comments, Class Actions, Securities

The following post by Elder Marques and Timothy Chapman-Smith on our Canadian Appeals Monitor blog may be of interest to readers of this blog:

The Final Word (Again?) On Limitation Periods for Securities Class Actions

The Ontario Court of Appeal’s decision in Green represents yet another plaintiff-friendly class action development from the Canadian courts, this time in the context of limitation periods.  Less than two years after its watershed decision in Timminco, Ontario’s highest court reversed itself and in a decision authored by Feldman J.A. re-cast the limitation period regime governing secondary market civil liability under the Ontario Securities Act. … Continue Reading

2013 U.S. Class Action Decisions with the Potential to Affect Canadian Class Actions

Posted in Appeals, Certification, Competition, Securities

Outside of Canada, there were several appeal decisions from the U.S. Supreme Court in 2013 that may well prove to have an impact here in Canada.

In regards to class action waiver clauses, a six justice majority of the U.S. Supreme Court held, in American Express Co. v. Italian Colors Restaurant, that the Court could not invalidate an express class action waiver in an arbitration agreement and so the claims should be continued by arbitration (although, the three remaining justices handed down a very strong dissent). This is an issue that has had little comment so far in Canada and has yet to be considered by our own Supreme Court. … Continue Reading