Trends in Canadian Securities Class Actions: 1997-2008

By Mark L. Berenblut, Bradley A. Heys, and Svetlana Starykh¹

INTRODUCTION

Securities class actions are a relatively new development in Canada, spurred on by recent legislative changes. Although all but one province had enacted class action legislation by 2004, including Québec in 1978 and Ontario in 1993,² securities claims brought under common law allegations of negligent and fraudulent misrepresentation were not conducive to class actions. More recently, however, amendments to provincial Securities Acts have opened the door to securities class actions. Specifically, four provinces have introduced civil liability for continuous disclosure (CLCD) and a right of action for investors harmed by misrepresentations or failures to make timely disclosure. In Ontario, the first province to amend its Securities Act ("the OSA"), civil liability for continuous disclosure has been in force since December 31, 2005, under Part XXIII.1 of the OSA. Alberta (effective December 31,