The plaintiff, George Leon, brought a proposed class action in Ontario against Volkswagen AG for fraudulent misrepresentation related to the purchase of VWAG American Depositary Receipts (ADRs) and common shares on foreign exchanges.
Volkswagen AG moved to dismiss the action for lack of jurisdiction or, alternatively, to stay it on the grounds of forum non conveniens.
The court dismissed the action, finding no real and substantial connection to Ontario, as VWAG did not carry on business in Ontario and the tort of fraudulent misrepresentation was not committed there.
The court also found that the U.S. (for ADRs) and Germany (for common shares) were clearly more appropriate forums, emphasizing the principle of international comity in cross-border securities litigation and giving little weight to the plaintiff's asserted juridical advantages in Ontario.
