Canadian Investor Alert: Li-Cycle Holdings Corp., the Shareholder Class Action will proceed forward

(August 2, 2024).

The Court (J.T. Akbarali J.) released an Order resolving Li-Cycle Holdings Corp.’s (“Li-Cycle”) motion to stay the proceeding under the legal doctrine “forum non conveniens”. Pursuant to this Order the Plaintiff must amend the pleading to be on behalf of the Plaintiff and all other similarly situated Canadian beneficial owner investors with the causes of action pursuant to (i) common law misrepresentations; and (ii) breaches and other forms of relief pursuant to the Ontario Business Corporations Act.

This Order affirms Canadian courts’ views about protecting its investors even when purchasing shares of a company listed on foreign stock exchanges.

Quoting J.T. Akbarali J., in a recent shareholder class action, “There is no evidence before me of an international “place of trading” norm to which comity would demand I accede in deciding whether and what to certify in this case. To the extent [company] relies on reasonable expectations of purchasers on foreign markets, there is no evidence of that either. If I am asked to draw conclusions based on common sense, I agree that one can make a practical case for an American purchaser of shares on the Nasdaq expecting that they would be able to assert their rights under American law. However, one can also make a practical case that a shareholder residing in the United States who purchases shares of an Ontario company on the Nasdaq would expect to be able to hold the company responsible for its actions based on the law of its home jurisdiction, especially when the jurisprudence in Ontario has endorsed global classes in securities litigation.” Longair v. Akumin Inc. et al., 2024 ONSC 3675.

Canadian investors are encouraged to register their interest in this class action to receive updates.