The plaintiffs brought a proposed class action against mutual fund managers for permitting market timing, which allegedly caused losses to long-term investors.
The defendants had previously entered into settlement agreements with the Ontario Securities Commission (OSC) regarding the same conduct.
The motion judge dismissed the certification motion, finding the OSC proceedings were the preferable procedure.
The Divisional Court allowed the plaintiffs' appeal.
The Court of Appeal dismissed the defendants' appeal, holding that the OSC proceedings were regulatory and lacked participatory rights for investors, and therefore did not fulfill the access to justice goals of the Class Proceedings Act.
The class action was deemed the preferable procedure.
