The plaintiff, a shareholder of the corporate defendant, sought leave to commence a secondary market misrepresentation claim under the Securities Act following the collapse of a tailings storage facility at the defendant's mine.
The plaintiff alleged that the defendant knew or ought to have known of the facility's compromised structural stability and failed to disclose it.
The court dismissed the motion for leave, finding that the plaintiff failed to establish a public correction of the alleged misrepresentation.
The press release issued by the defendant merely stated that the facility had breached and the cause was unknown, which did not indicate that any previous disclosure was untrue or misleading.
