Financial Post reports on IMAX’s lawsuit troubles:
In a groundbreaking case, an Ontario Superior Court judge has certified a class-action law suit against IMAX Corp., the Canadian entertainment technology maven that pioneered giant-screen cinema.
The case is notable because it is the first to test changes to the Ontario Securities Act, which created civil liability for what is called secondary market disclosure. The changes made it easier for disgruntled shareholders to sue officers and directors of a company over alleged misrepresentations or omissions in public disclosure documents; however, until now, no one knew what the threshold for bringing such a case would be.
In the ruling, that will no doubt be cheered by investors, and jeered by Bay and Wall Streets, Justice Katherine van Rensburg held that the hurdle for bringing such litigation should be set low.
“There is no reason to read in a ‘high’ or ‘substantial’ onus requirement for good faith in this type of proceeding,” she ruled, adding that “a threshold that is too difficult to meet will eventually have little deterrent value.”
UPDATE: More coverage on this ruling from around the web:
The Am Law Litigation Daily: Ontario Judge Certifies Global Investor Class in Landmark Decision
The D & O Diary: In Landmark Rulings, Ontario Court Allows IMAX Securities Suit to Proceed, Certifies Class
Victoria Times Colonist: Imax faces class-action suit
The Globe and Mail: Imax suit going ahead
The Montreal Gazette: IMAX faces landmark class action
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