According to the report, securities class action filings in Canada for 2009 remained above historical average filings. Eight securities class actions were filed in 2009, compared with the 10 filings in 2008. While filings are slightly lower this year, they are still higher than any other year since class action legislation was first enacted in Canada.
Settlement values for securities class actions in 2009 were significantly lower than in 2008, with six cases settled in 2009 for approximately $51 million in total payments versus eight cases for approximately $890 million in total payments in 2008. The average settlement for 2009 was $8.5 million and the median settlement was $9 million.
Other key findings from the report include
- There are now more than $14.7 billion in outstanding plaintiffs’ claims in Canadian securities class actions.
- A record six new cases were filed in 2009 involving allegations of misrepresentations and/or omissions by issuers, including claims brought under the new continuous disclosure provisions.
- In 2009, there was not a single new securities class actions filings related to the credit crisis.