Unlike the United States, where the statutorily based “fraud on the market” doctrine has enabled widespread shareholder class action litigation, the necessity in Canada of establishing actual reasonable reliance by the individual shareholder on alleged misrepresentations contained in secondary market disclosure has stood as a significant barrier to shareholder class actions.
However, recently introduced proposed amendments to the Ontario Securities Act which incorporate the notion of deemed reliance by shareholders on secondary market disclosure, will open the door significantly to shareholder class actions in Canada.
In this paper, there is a description of the new scheme of statutory civil liability for secondary market disclosure which will be adopted by the proposed amendments to the Securities Act.

type Statutory Civil Liability for Secondary Market Disclosure: Opening the Door to Shareholder Class Actions in Canada