The plaintiff brought a class action alleging that the defendant mining company made secondary market misrepresentations by failing to disclose the negative opinions of one of its mining consultants regarding a mineral resource estimate.
On cross-motions for summary judgment, the court dismissed the action, finding that the consultant's opinions were unsolicited, inexpert, premature, and based on unreliable data.
The court held that the defendants were not obliged to disclose unreliable information, meaning there was no omission of a material fact.
In the alternative, the court found that the defendants satisfied the reasonable investigation defence under the Securities Act.
