The plaintiff invested $5 million in preferred shares of a financially troubled credit union pursuant to an offering statement.
The credit union was subsequently placed into administration and liquidation following the discovery of a complex mortgage fraud and the issuance of large, improper loans.
The plaintiff sued the credit union's directors and external auditors, alleging a material misrepresentation in the offering statement regarding the use of 'appraised values' for mortgage approvals.
The Superior Court of Justice dismissed the action, finding no material misrepresentation, no causation, and that the defendants had established a statutory defence.
The court also denied the plaintiff's mid-trial motion to amend the pleadings, ruling the new allegation was statute-barred.
