The plaintiffs sought leave under Part XXIII.1 of the Securities Act and certification of a proposed class proceeding alleging secondary market misrepresentation by a public issuer and its directors and officers in continuous disclosure documents.
They also requested approval to discontinue common law negligent misrepresentation and oppression remedy claims in favour of the statutory cause of action.
The court held that the plaintiffs met the statutory leave test by demonstrating good faith and a reasonable possibility of success at trial.
It further concluded that discontinuance of the common law and oppression claims would not prejudice class members because the statutory claim avoided reliance issues and certification difficulties.
The action was certified as a class proceeding, with identifiable class members, common issues, and a preferable procedure established.
