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ARTICLE · 01 AUGUST 2025

Can You Be Sued In A Securities Class Action When The Correction Causes No Price Decline?

McCarthy Tétrault
McCarthy Tétrault
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The Ontario Superior Court's securities class action leave decision in Longair v. Akumin Inc. et al. addressed a rare issue: what happens if a public correction does not cause a price drop in the secondary market?

CanadaLitigation, Mediation & Arbitration
Canadian Securities Regulatory Monitor
Canadian Securities Regulatory Monitor
Shane D'Souza
Shane D'Souza
Chris Puskas
Chris Puskas
Robert J. Richardson
Robert J. Richardson
Matthew Cumming
Matthew Cumming
Tyler Hastings
Tyler Hastings
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The Ontario Superior Court's securities class action leave decision in Longair v. Akumin Inc. et al. addressed a rare issue: what happens if a public correction does not cause a price drop in the secondary market? The decision, which is being appealed to the Divisional Court, provides a useful review of principles concerning public corrections in the class action context and has important implications for reporting issuers filing corrective disclosures.

Background

In June 2021, Akumin Inc. ("Akumin") announced an agreement to acquire Alliance HealthCare Services Inc. ("Alliance") for $820 million USD. If completed, this transaction would transform Akumin's business and roughly triple its size. It was expected to close in Q3 2021.

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