Jon Bradford

The defendants brought a motion under section 5(6) of the Class Proceedings Act, 1992 to stay a proposed global securities class action in Ontario in favour of a similar proposed class action in British Columbia.

The Ontario action alleged statutory secondary market misrepresentation and common law negligent misrepresentation regarding the defendants' artificial intelligence products.

The court considered the objectives and factors under section 5(7) of the Act, noting that the Ontario action was more advanced, had a more streamlined pleading, and that the corporate defendant was a well-resourced telecommunications company capable of litigating in multiple jurisdictions.

The court concluded that the objectives of judicial economy and ensuring justice for all parties favoured allowing the Ontario action to proceed.

The motion for a stay was dismissed.

The plaintiffs in three related proposed class actions sought leave to proceed under the Securities Act, certification under the Class Proceedings Act for settlement purposes, and approval of a Notice of Settlement Approval Hearing.

The actions alleged misrepresentations by a cannabis company regarding its facility expansion.

The court found the certification criteria were met for settlement purposes, granted leave to proceed under the Securities Act, and approved the form and dissemination plan for the settlement notice.