News & Publications

Securities

Class Actions Team Ranked in Band 1 in Chambers Canada 2019

Written by on September 24, 2018.

The class actions team at Siskinds LLP has been ranked in the top band of the Chambers Canada 2019 guide, issued by international legal research organization, Chambers and Partners. Also of notable achievement was the inclusion of four partners who were recognized for their individual stature in the field of class actions. Commentary from the guide includes the following accolades for these partners: Charles Wright is considered one of the "most effective business people" in the Canadian p...

Recent Developments in Securities Class Actions: Pre-Certification Jurisdictional Challenges

Written by on September 14, 2018.

Today, capital markets are essentially borderless. Stock exchanges with physical trading floors have become an anachronism. Electronic transactions are the norm. With the click of a button, Canadian investors can buy and sell securities of foreign companies on foreign stock exchanges. But what happens when a Canadian investor loses money on their investment because the foreign company did not give them proper disclosure of facts that impact the value of the company’s securities? Are they en...

Auditors Must Properly Audit Their Client Companies and Would be Legally Liable if they Fail to do so, Supreme Court of Canada Holds

Written by on December 20, 2017.

Case commentary: Deloitte & Touche v Livent Inc (Receiver of), 2017 SCC 63 In a long-awaited judgment rendered today, a unanimous Supreme Court of Canada held that Deloitte & Touche (now, Deloitte LLP) owed, and breached, a duty of care by failing to perform a proper statutory audit of its client, the defunct Livent Inc. Additionally, a majority of the Court found Deloitte liable to Livent for the increase in Livent’s liquidation deficit which followed Deloitte’s impugned audit—...

Securities Fraudsters to the SEC: Can We Have Our Money Back?

Written by on November 13, 2017.

Canadian class action litigators have the reputation of being more cautious than their neighbors to the south.  It's a reputation surely bolstered by a recent example of colossal chutzpah where acknowledged fraudsters launched an American securities class action to recover their ill-gotten gains. The American Supreme Court seems to have stoked the fires when it published a tantalizing footnote in a recent securities law opinion, Kokesh v. SEC, 137 S. Ct. 1635 (2017).  Kokesh was a unanimous...

Court of Appeal Finds in Favour of Plaintiff in Securities Class Action

Written by on October 03, 2017.

A recent decision by the Ontario Court of Appeal has provided clarity on how courts should approach secondary market misrepresentation cases at the preliminary leave stage. In Rahimi v SouthGobi,[1] the Plaintiff Paiman Rahimi (represented by Siskinds) appealed a lower court decision that had granted him leave to commence an action for misrepresentations under the Ontario Securities Act against the Defendant SouthGobi but denied him leave against certain of the company’s officers and direct...

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...

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...