SCC Confirms Robust Leave Test In Ontario For Securities Class Actions

On Dec. 4, 2015, the Supreme Court of Canada released its much-anticipated decision in three securities class actions involving CIBC, IMAX and Celestica.¹

The SCC made three significant rulings in its decision:

1. The robust merits-based test for leave to assert a statutory secondary market misrepresentation claim set out by the SCC in Theratechnologies² applies in Ontario.
2. For the purposes of a common law misrepresentation claim, the inferred reliance theory that posited that reliance could be determined on a class-wide basis has been effectively shut down in typical securities class actions.
3. For cases that are governed by the former limitation period under the Securities Act, leave to commence a statutory secondary market misrepresentation claim must be obtained before the limitation period expires.