Until recently, Ontario courts had not considered on the merits
a class action under the secondary market misrepresentation
provisions of the Ontario Securities Act. There was
therefore some uncertainty about how courts would apply the
different evidentiary standards that plaintiffs must meet at the
various stages of a securities class action (i.e., leave
to proceed, certification and trial). In Wong v. Pretium
Resources, 2021 ONSC 54, Justice Belobaba summarily
dismissed the plaintiff's claim, finding that the defendants
had not made any misrepresentation by omission and that, in any
event, the defendants had a valid reasonable investigation defence.
Justice Belobaba held that while the plaintiff was able to meet the
test for leave to proceed, they did not prove on a balance of
probabilities that there was a misrepresentation or reliance.
