Timothy D. Chapman-Smith

The plaintiffs brought a proposed class action alleging a global price-fixing conspiracy by the defendants regarding airfreight shipping services.

The defendants brought a motion to stay the action as it related to absent foreign claimants, arguing the court lacked jurisdiction simpliciter.

The court granted the motion, finding that the real and substantial connection test should not be applied to establish jurisdiction over absent foreign claimants, as an Ontario judgment would not be recognized abroad, offending principles of order, fairness, and comity.

Alternatively, the court held that even if jurisdiction existed, it would decline it on the basis of forum non conveniens.

The Ontario Securities Commission held a sanctions and costs hearing following a merits decision that found the respondents engaged in unregistered trading, illegal distribution of securities, and fraud.

The respondents raised approximately $1.7 million from investors through the sale of shares in PlusPetro Inc. and misappropriated the funds for personal use.

The Commission ordered permanent market bans against all respondents, with a limited carve-out for the individual respondents to trade in personal registered accounts once all monetary sanctions are paid.

The respondents were ordered to disgorge $1.7 million on a joint and several basis.

Administrative penalties of $500,000 and $150,000 were imposed on the individual respondents.

The respondents were also ordered to pay $309,812.56 in costs.