Megan B. McPhee

The plaintiff sought leave to commence a secondary market misrepresentation action under the Securities Act and to certify a class proceeding against the defendants for misrepresentation, conspiracy, and oppression.

The plaintiff alleged that the defendants fabricated a financial crisis by including a 'going concern' note in the company's financial statements to artificially depress the share price, allowing insiders to acquire shares cheaply.

The court dismissed the motion for leave, finding no reasonable possibility of success at trial, as the financial disclosures were factual, required by GAAP, and made after reasonable investigation.

The court also refused to certify the conspiracy claim due to a lack of factual basis and struck the oppression claim, ruling that the Ontario Superior Court lacked subject-matter jurisdiction over an oppression remedy under the British Columbia Business Corporations Act.

Following dismissal of a proposed pharmaceutical class action certification motion, the successful defendants sought $1.2 million in costs.

The plaintiffs argued that no costs should be awarded due to public interest considerations relating to individuals with mental illness or, alternatively, that costs should be limited to $75,000.

The court held that although individuals with mental illness may constitute a historically disadvantaged group, the evidentiary record did not engage the public interest considerations under s. 31 of the Class Proceedings Act, 1992.

Applying the principles governing certification motion costs and considering the complexity of the proceeding, the plaintiffs’ litigation conduct, and comparable awards, the court fixed fees at $475,000 and allowed most disbursements subject to a reduction in travel expenses.

The plaintiffs in a proposed class action sought orders to have a motion for approval of a third party financing and indemnity agreement heard without notice to the defendant, in camera, and with the documents sealed.

They argued that disclosure would compromise solicitor-client privilege and litigation strategy.

The court dismissed the motion, holding that the defendant is affected by the funding agreement and entitled to notice and participation.

The court further held that third party funding agreements are not privileged, or if they are, the privilege is waived when applying for court approval.

The open court principle requires the funding motion to be heard publicly, though the court provided specific procedural directions for the future motion.

The plaintiffs brought a motion to certify a class action against the defendants, the manufacturers of the antipsychotic drug Seroquel.

The plaintiffs alleged that Seroquel caused various health risks, including weight gain and diabetes, and that the defendants were negligent in their design, testing, marketing, and failure to warn, particularly regarding off-label uses.

The court dismissed the certification motion, finding that the plaintiffs failed to satisfy any of the criteria under section 5(1) of the Class Proceedings Act.

The statement of claim was found to be fundamentally deficient, failing to disclose a valid cause of action.

Furthermore, the court found no identifiable class, a lack of common issues capable of being assessed in common, that a class action was not the preferable procedure, and that the proposed representative plaintiffs were unsuitable.