Convergence And Divergence On Securities Class Actions

The United States Supreme Court takes a new approach on the standards for certification.

The class action is a litigation technique that lends itself well to claims by security-holders against issuers. The classes of purchasers of securities are easily definable, the losses are often all too publicly ascertainable, and the procedural benefits of one large claim (as opposed to a multitude of related actions in various jurisdictions) are clear. Securities class actions can grow, geographically, depending on where the securities were issued. With increased integration of the Canadian and global (particularly American) capital markets, more and larger class action claims by disgruntled shareholders and bondholders can be expected.