Ten new securities class actions were filed in
As in 2012, all of the 2013 filings were shareholder class actions, confirming the trend away from previous years' filings of non-shareholder securities class actions, such as those involving Ponzi schemes and/or investment funds. Nine of the new filings in 2013 involved claims under the secondary market civil liability provisions of the provincial securities acts ("Bill 198" cases), continuing the pace of new filings seen in each of the past two years (eight in 2012 and nine in 2011).
A key development that may affect future securities class action trends is the
"The panel's decision may be seen as resolving some of the questions regarding the application of the limitation period in Bill 198 cases that had followed the OCA's decision in the
The number of settlements in Canadian securities class actions doubled in 2013 to six (from three in 2012), the largest number since 2009. Five of the six 2013 settlements are Bill 198 cases. Only one case (
The median settlement amount was
Canadian Securities Class Actions: Key Trends
Eight of the 10 2013 filings involved issuers with securities listed on the TSX; six of these issuers were also cross-listed on US exchanges. Nine of the 10 cases filed in 2013 were Bill 198 cases, a trend in line with previous years.
As in previous years, the large majority of cases (eight out of 10) were filed in
Nine Canadian-domiciled companies were the subject of a US securities class action during 2013; five of these companies are also the subject of a parallel Canadian securities class action.
Although cases brought against companies in the mining or oil and gas sectors accounted for the largest number of Canadian securities class action filings, the sector's share of new cases filed declined substantially to 40% in 2013, from about two-thirds in 2012.
The median time from the end of the proposed class period to a 2013 filing was 2.1 months and the average was 10.6 months.
Class Action Trends Series
Trends in Canadian Securities Class Actions: 2013 Update may be downloaded from: http://www.nera.com/67_8426.htm
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