Trends in Canadian Securities Class Actions: 2009 Update - New Wave Of Canadian Securities Class Actions Reaches The Certification Stage

By Mark L. Berenblut and Bradley A. Heys¹

INTRODUCTION

In last year's study, we noted that securities class actions were on the rise in Canada and suggested that this new wave of filings is a reflection of the fact that class counsel seem prepared to test the new provisions of the provincial Securities Acts relating to secondary market liability.² Although still in its infancy, the maturation process of this type of litigation continued during 2009.

Perhaps most notable in 2009, because of their potential impact on future trends in Canadian securities class actions, are the decisions of the Ontario Superior Court of Justice certifying three securities class actions, and the decision in IMAX granting leave for the plaintiffs to pursue claims under Part XXIII.1 of the Ontario Securities Act (OSA)—the first such ruling on an application to proceed with claims under the new secondary market liability provisions of the provincial Securities Acts.