Alan Lenczner

The plaintiff moved for settlement approval, certification for settlement purposes, and fee approval in a class action for secondary market misrepresentation against Nobilis Health Corp. The proposed settlement involved abandoning the appeal of a previously dismissed certification motion and dismissing the action against Nobilis, which was effectively judgment-proof.

The court approved the settlement, finding it in the best interests of the class.

The court also approved class counsel's additional fee request of $100,000 and a cy-près distribution of the remaining trust funds to the Class Proceedings Fund, but declined to award an honourarium to the representative plaintiff.

The plaintiff sought leave under s. 138.8(1) of the Securities Act to bring a statutory cause of action for secondary market misrepresentation against the defendant corporation, and to certify the action as a class proceeding.

The plaintiff alleged that the defendant made material misrepresentations in its financial statements, which were later restated.

The court dismissed the motion for leave, finding that the plaintiff had no reasonable possibility of success because the specific misrepresentations pleaded were not material to a reasonable investor, and the alleged corrective disclosure did not relate to the pleaded misrepresentations.

Consequently, the certification motion was also dismissed.