Cronos and the Future of the Global Shareholder Class Action

  • January 03, 2024
  • Garth Myers

In Badesha v. Cronos Group, Inc., 2023 ONSC 5678, the Ontario Superior Court of Justice provided additional clarity as to when it will take jurisdiction over claims of class member purchasers of securities on a foreign exchange for claims under Part XXIII.1 of the Ontario Securities Act (“OSA”).

This was a case about Cronos Group Inc.’s share price decline following its restatement of three quarters of revenue. Cronos’s shareholders sued Cronos and its officers for liability under OSA s. 138.3(1) for misrepresentations in Cronos’s financial statements.

The claims were advanced on behalf of a global class of Cronos shareholders, including those who purchased shares on the Toronto Stock Exchange and the Nasdaq.