In Sweeping Securities Reform, Canada Imports U.S.-Style Civil Liability

Law360, New York (October 7, 2005, 12:00 AM EDT) -- Entering a new frontier in securities litigation, the government of Ontario, Canada has passed a U.S.-style securities act, drawing ire from some corporations and giving greater rights to investors.

For the first time, stock market investors will be able to sue corporate executives who issue misleading financial statements that lead to devalued stock prices.

The modifications to Ontario’s Securities Act are expected to trigger a philosophical change in corporate Canada, where until now investors who purchased inflated stock on the exchange had no recourse. Only those...
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