Catucci V. Valeant: Implications For Quebec Financings

Quebec courts have reaffirmed how challenging it can be for underwriters, issuers and other defendants to resist securities class actions for statutory primary market liability at the authorization or "certification" stage.

In 2017, the Superior Court of Québec and the Québec Court of Appeal gave the green light for a class action lawsuit involving Valeant Pharmaceuticals International Inc. (Valeant), a dual-listed company on the TSX and NYSE, to go to trial for statutory primary market liability and other causes of action because of the "low standard" of "appearance of right" at the authorization stage, thus illustrating how challenging it can be for defendants to obtain the early dismissal of such cases.