Legal Alert: SCC Says Class Action the Way to Go for Investors’ Claim Against Mutual Fund Managers
December 12, 2013
By Daniel Wallace, at McInnes Cooper
On December 12, 2013 the Supreme Court of Canada reaffirmed the role of class actions in facilitating access to justice when it certified a class action brought on behalf of a large group of investors against mutual fund managers.
In AIC Limited v. Fischer, the SCC decided a class action was “the preferable procedure for the resolution of the common issues” – one of the criteria to certify a class – even though the Ontario Securities Commission had already investigated the managers leading to a settlement agreement and payments to many of the proposed class of plaintiffs totalling millions of dollars.
The SCC compared the class action and security commission investigation procedures and considered which would further the goal of access to justice and their respective costs and benefits:
- the OSC investigation was regulatory in nature, and allowed for only limited participation by the investors; and
- the class action procedure made it economically feasible to bring and resolve the claims.
The SCC decided the class action procedure was preferable and certified the class action – despite the OSC’s previous investigation and settlement.
Click here to read the SCC’s decision in AIC Limited v. Fischer.
Please contact your McInnes Cooper lawyer or any member of our McInnes Cooper Class Actions Team to discuss this topic or any other legal issue.
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