Leave For Secondary Market Misrepresentation Isn't A Low Bar

Bradley v Eastern Platinum Ltd.¹ ("Bradley"), a proposed securities class action for alleged secondary market misrepresentation, was recently resolved in an unsuccessful application for leave under the Securities Act to bring the proceeding.² The applicant alleged that Eastern Platinum Ltd., a platinum producer, did not disclose material changes, including a shutdown of the company's mine, that reduced production. The respondents, Eastern Platinum and three named individuals, produced evidence contradicting the allegation that such material changes took place. In her decision denying leave, Justice Rady noted it has become customary for such applications to have an evidentiary record that is "voluminous, comprehensive and daunting."³ Indeed, Bradley demonstrates the evidentiary hurdles that secondary market claims will face in the early stages of the litigation.