January 29, 2018 News

Morganti & Co., P.C. secures ruling that protects Canadian investors that purchase securities on foreign stock exchanges

December 20, 2017.  In Paniccia v. MDC Partners, Inc., et al, 2017 ONSC 7298, the Ontario Superior Court dismissed the defendants’ attempt to restrict the investor class to investors that purchased the shares domestically on the Toronto Stock Exchange.  Justice Perell agreed with the investors, and in doing so found the defendants’ expert Professor John Coffee Jr.’s evidence unhelpful, that the provincial laws were created to protect Canadian investors’ purchases of shares purchased on domestic and foreign stock exchanges.  Andrew Morganti, the Firm’s managing principal, states that “this outcome was consistent with the Firm’s previous success in Kaynes v. BP PLC, 2013 ONSC 5802 and 2016 ONCA 601.  The provincial courts recognize that Canadian investors need protection from foreign and multinational corporations that mislead them in investment decisions.  Simply put, Canada does not follow the U.S.’s Morrison v. National Australian Bank.”  The investors’ expert was Professor Adam Pritchard, University of Michigan Law School.

The investors are represented by Andrew Morganti, Eli Karp, and Hadi Davarinia.