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ARTICLE · 03 MARCH 2026

Inferring Materiality From Share Price Movement: Dziedziejko V Canopy Growth

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In Dziedziejko v Canopy Growth, 2025 ONSC 6766, the Ontario Superior Court of Justice concluded that materiality can be inferred from a drop...

CanadaLitigation, Mediation & Arbitration
Robert Staley
Robert Staley
Doug Fenton
Doug Fenton
Sophia DiNicolo
Sophia DiNicolo
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In Dziedziejko v Canopy Growth, 2025 ONSC 6766, the Ontario Superior Court of Justice concluded that materiality can be inferred from a drop in a public issuer's share price following the correction of an admitted misstatement, justifying leave to commence a secondary market misrepresentation claim under the Ontario Securities Act.

Background: Canopy's Misstatements and Correction

The plaintiff, on behalf of investors who acquired shares in the defendant, Canopy Growth Corporation (Canopy), sought leave to proceed with a claim of secondary market misrepresentation under s.138.8 of the Ontario Securities Act and certification of a class proceeding for misrepresentation and oppression under s.5(1) of the Class Proceedings Act.

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