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'Reasonable investigation' defence under Securities Act considered by Ontario court

Friday, November 17, 2017 @ 9:11 AM | By Lauren Lackie

The Ontario Court of Appeal has released a decision that provides guidance on the evidentiary onus placed on defendants raising the “reasonable investigation” defence at the leave stage of securities litigation. In Rahimi v. SouthGobi Resources Ltd. 2017 ONCA 719, the court also cautions motion judges not to treat leave motions like mini-trials and to simply do their best with the evidence before them at the leave stage.

SouthGobi is a publicly traded coal mining firm. In 2013, the company issued a restatement of its prior...