An Ontario Superior Court Judge recently certified only a portion of the claim against Gammon Gold Inc. as a class action, declining to name the suit a global class. This effectively limits the class to certain investors. The judge however did allow the class action to go forward for violating s. 130 of the Ontario Securities Act, which deals with alleged misrepresentations in a prospectus.

An investor is suing over its regulatory filings and production estimates. The stock plunged after the company disclosed it would not produce 400,000 ounces of gold as claimed in a press release.

The judge also shot down a claim for negligent misrepresentation, saying that the parties would have to show the investors relied on misstatements, said Barry Glaspell, a parter in the Toronto office of Borden Ladner Gervais LLP.

That's notable, Mr. Glaspell said, because two other Ontario rulings have held that reliance may not have to be proved for a negligent-misrepresentation case to go forward.