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Securities

Lavender v Miller Bernstein: An Auditor’s Duty to Non-Clients

Written by on July 14, 2017.

Introduction The Ontario Superior Court of Justice in Lavender v Miller Bernstein [1] recently added to the jurisprudence regarding a defendant’s liability for a negligent misstatement in a situation where the plaintiff did not personally read or rely on the misstatement.  Siskinds LLP is counsel to the class members. The decision clarifies the circumstances under which an auditor may owe a duty of care to persons other than its clients. Background This was a motion for summary judgme...

Misrepresentation in Accredited Investor Prospectus Exempt Offerings in Ontario

Written by on June 10, 2016.

Misrepresentation in Accredited Investor Prospectus Exempt Offerings in Ontario; Part I - Mind the Angle Shooters The more dangerous malefactors are the men in high places who take a good property, overcapitalize it, appraise its value at many times what it is worth, use artful publicity and market methods to beguile the public into believing the stock is worth par or more, and foist it on investors at a figure which robs them of great sums of money. It was inevitable that I would start out t...

Canadian Courts’ Jurisdiction Over Foreign Defendants in Cases Arising From E-Commerce Relations

Written by on August 21, 2015.

With the internet expanding its reach globally, the marketplace participants increasingly turn to it in order to foster their businesses.  Manufacturers, distributors, retail stores and service providers take advantage of the internet in order to increase their customer base.  Customers, similarly, increasingly use the internet to access products and services.  As a result, the past decade has seen the birth and astonishing growth of giant internet-based companies that either sell products or...

Basic’s Alive – The Judicial Oak Weathers the Storm

Written by on July 02, 2014.

For over 20 years, securities class actions in the U.S. have relied on the ‘fraud-on-the-market’ theory of reliance for investors. This was established by the 1988 case Basic Inc v Levinson. Recently some have question this theory. Earlier this week the Supreme Court released its decision in Halliburton co v Erica P John Fund. This decision upheld Basic and the fraud-on-the-market theory. The most important issue in a class action is whether it can be “certified”—that is, ...

National class actions to be considered at the national level: The Supreme Court of Canada grants leave to appeal in Meeking v Cash Store Inc

Written by and on March 21, 2014.

On February 27, 2014, the Supreme Court of Canada granted leave to appeal the decision of the Manitoba Court of Appeal in Meeking v Cash Store Inc, 2013 MBCA 81. Meeking partially enforced an order approving the settlement of a class action by the Ontario Superior Court that determined the rights of Manitoba residents. In reaching this conclusion, the Court of Appeal confirmed that common issues, shared between resident and non-resident class members, can form a presumptive connecting factor for...

Towards a New Class Action Certification Costs Framework?

Written by and on March 07, 2014.

Introduction In a succession of decisions issued in November 2013, Justice Belobaba articulated a new framework for determining the appropriate level of costs to be awarded on class action certification motions.[1]  Citing the fundamental objective of access to justice, Belobaba J. expressed a preference for a no costs regime in class proceedings.  His Honour indicated that granting costs awards following certification motions required further transparency and more reliable metrics, notwithst...

A Good Day for Investors: The Ontario Court of Appeal Fixes the Timminco Problem

Written by on February 05, 2014.

On February 3, 2014, the Ontario Court of Appeal released its decision Green v Canadian Imperial Bank of Commerce. This decision set aside the Court’s previous interpretation of the leave process under Part XXIII.1 of the Ontario Securities Act with respect to the limitation period.  In doing so, the Court has brought rationality back to the leave process, clarified the leave standard, and addressed issues involved in the certification of common law negligent misrepresentation claims.  This ...

Class Actions under the Microscope: The Law Commission of Ontario’s Class Actions Project

Written by on January 23, 2014.

It has been just over twenty years since the Ontario Class Proceedings Act came into force. Since then, there have been many landmark class actions and there has been a significant amount of case law building on the framework of the Class Proceedings Act. It has been just over twenty years since the Ontario Class Proceedings Act came into force. Since then, there have been many landmark class actions and there has been a significant amount of case law building on the framework of the Class Proce...

All That e-Glitters: Bitcoins and Securities Regulation

Written by on August 23, 2013.

What are Bitcoins and what laws apply to them? In a new post, Siskinds class action lawyer Daniel Bach explains what Bitcoins are and looks at a recent US court decision considering whether or not they should be governed by securities laws.The age-old question: “if a new security purports to be free of government regulation, will the government, in fact, regulate it?”  The emergence of bitcoins, a type of cryptographic “currency,” offers yet another opportunity to as...