Mahdi Hussein

In a securities class action arising from an issuer's restated financial statements and revised guidance, the court considered leave under the Securities Act for secondary market claims, certification under the Class Proceedings Act, and the defendants' summary judgment motion on limitation issues affecting the primary market claim.

The court held there was a reasonable possibility of success on claims based on conceded financial misstatements, omission of intersegment sales from the IPO prospectus, and related officer certifications, but not on alleged misstatements in the issuer's financial outlook because the assumptions were reasonable when made and the plaintiff had not shown materiality.

The action was certified as a class proceeding, with the court rejecting proposed subclass restrictions tied to Canadian underwriters and post-correction shareholding.

On the limitations issue, the court held that the Securities Act ousts common-law discoverability for the 180-day period and requires actual knowledge of the facts giving rise to the claim.

Summary judgment was dismissed because the record did not establish that the representative plaintiff had actual knowledge outside the limitation period.

In a securities class action arising from an issuer's restated financial statements and revised guidance, the court considered leave under the Securities Act for secondary market claims, certification under the Class Proceedings Act, and the defendants' summary judgment motion on limitation issues affecting the primary market claim.

The court held there was a reasonable possibility of success on claims based on conceded financial misstatements, omission of intersegment sales from the IPO prospectus, and related officer certifications, but not on alleged misstatements in the issuer's financial outlook because the assumptions were reasonable when made and the plaintiff had not shown materiality.

The action was certified as a class proceeding, with the court rejecting proposed subclass restrictions tied to Canadian underwriters and post-correction shareholding.

On the limitations issue, the court held that the Securities Act ousts common-law discoverability for the 180-day period and requires actual knowledge of the facts giving rise to the claim.

Summary judgment was dismissed because the record did not establish that the representative plaintiff had actual knowledge outside the limitation period.