Quantifying losses resulting from misrepresentations in the secondary market is a developing area in Canada. Following changes to the Ontario Securities Act in 2005 that opened the door to securities class actions, there had been less activity than anticipated, due in part to the initial strength of the capital markets. However, the subsequent downturn has brought more securities class actions to the forefront.
The following article, written by former PwC partner Robert Martin, discusses the two main elements to consider when calculating damages under the Act. This article was originally published in the May 2010 issue of Lexpert magazine and is reprinted here with permission.