This newsletter provides timely updates and practical insights on securities litigation, regulatory enforcement, shareholder disputes, governance developments, and other issues affecting Canadian capital markets and their participants.
In this issue:
- What We're Up To
- Bridging the Gap: Ontario Commits to Join Canada's Securities Passport System
- Hindsight Is Not a Material Change: British Columbia Supreme Court Dismisses Securities Class Action
- Class Dismissed? Not Necessarily: Ontario Tests Out Its New Parallel Class Action Provisions
WHAT WE'RE UP TO
- We are pleased to announce that our Securities Litigation Group has been recognized as leaders in their field by Chambers Canada for the 8th consecutive year. Congratulations to Lara Jackson and John M. Picone for their individual rankings in this field.
- Congratulations to Lara Jackson on being named one of Benchmark Litigation’s Top 100 Women in Litigation for the 5th consecutive year.
- Members of the Cassels Securities Litigation team attended The Advocates Society’s 16th Annual Securities Symposium on October 1. This year’s program covered new regulatory developments, recent trends in civil liability and private enforcement, and the impact of evolving technologies, including artificial intelligence and cryptocurrency.
NEWS YOU NEED TO KNOW
Bridging the Gap: Ontario Commits to Join Canada’s Securities Passport System
Jacob Cawker | Kiyan Jamal | Ali Zankar | Mellisa Ing
For almost two decades, Ontario has operated alongside, but has not formally participated in, Canada’s “passport” system, which is a harmonized regulatory framework adopted by all other Canadian jurisdictions that provides market participants with a streamlined filing, review and approval process for many important securities filings. Ontario’s conspicuous absence in the passport system may soon change.
On July 15, 2026, Ontario’s commitment to join the passport system was announced, which will achieve greater regulatory harmonization across Canada and is an important step towards removing outstanding interprovincial trade barriers.
Hindsight Is Not a Material Change: British Columbia Supreme Court Dismisses Securities Class Action
Stephanie Stephenson | Sky Shin | Alicia Ying
In 0116064 B.C. Ltd. v. Alio Gold Inc., the Supreme Court of British Columbia dismissed a class proceeding and found that Alio Gold Inc. did not make misrepresentations in its public disclosures in the period leading up to a court-approved plan of arrangement transaction completed in May 2018 between Alio and Rye Patch Gold Corp.
This decision reaffirms that when assessing whether forward-looking guidance is an actionable misrepresentation, the reasonableness of the guidance must be assessed based on the information available when the guidance was issued, not through hindsight if the projected results do not materialize. The Court also clarified that operational difficulties, missed interim targets and internal discussions about possible adjustments do not necessarily constitute a material change requiring disclosure.
Class Dismissed? Not Necessarily: Ontario Tests Out Its New Parallel Class Action Provisions
Laura Cloutier | Michaila Pilcher | Alex Fox
In one of the first cases considering Ontario’s new rules for multi-jurisdictional class actions under the Ontario Class Proceedings Act, 1992, the Ontario Superior Court of Justice provides early guidance on how the Court will manage competing national class actions.
The Court confirmed in Yee v. Telus International (Cda) Inc. that parallel proceedings can continue in different jurisdictions, and there is no automatic presumption that a duplicative class action will be stayed in favour of an existing proceeding.
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