A Canadian mining company detected pit wall instability and a subsequent rockslide at its premier mine in Chile.
The company did not immediately disclose these events to investors, disclosing them about a month later as part of regular updates, after which its share price dropped 16 percent.
An investor sought leave under s. 138.8(1) of the Ontario Securities Act to commence a class action for failure to make timely disclosure of a material change.
The Supreme Court of Canada, dismissing the appeal, held that the motion judge erred in interpreting 'material change' too restrictively.
The undefined terms 'change', 'business', 'operations', and 'capital' should not be constrained by dictionary definitions but applied flexibly and contextually.
The leave test requires a plausible application of the legislative provisions to the facts, not merely a plausible statutory interpretation.
On the uncontested evidence that the events impacted the company's operations, there was a reasonable possibility the action could succeed at trial.