The plaintiffs, investors in mutual funds managed by Crystal Wealth, lost their life savings due to fraud by the fund's management.
They sought to certify a class action in negligence against BDO Canada LLP, the fund's auditor, alleging that BDO's failure to conduct proper audits delayed the discovery of the fraud.
The court dismissed the certification motion, finding it plain and obvious that the plaintiffs' pleading did not disclose a legally viable cause of action.
Applying established jurisprudence, the court held that BDO did not owe a proximate duty of care to the individual investors for their pure economic losses.
