Secondary market liability in Canada: securities class actions


Originally published in Practical Law Company's Multi-Jurisdictional Guide 2012/13: Dispute Resolution.

Investors, issuers and other stakeholders in Canada’s capital markets should be aware that all Canadian provinces and territories have recently amended their securities statutes to contain provisions that create civil liability for secondary market misrepresentation. Investors who purchase an issuer’s securities on the secondary market may now pursue a statutory claim against the issuer, its directors and officers, and other parties for any:

- Misrepresentations in the issuer’s continuous disclosure documents or oral public statements.

- Failure to make timely disclosure of a material change.

The enactment of this statutory regime has resulted in a marked increase in the number of securities class actions in Canada. According to a 7 February 2012 report from NERA Economic Consulting, a total of 35 proposed secondary market liability class actions have been filed since the regime was first introduced in Ontario in 2005. These cases accounted for two-thirds of all securities class actions filed between 2008 and 2011.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:


Dentons on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.