Montréal (Canada) - Fasken Martineau, a leading international business law and litigation firm, announced today that the Supreme Court of Canada has dismissed the appeal that 12181 Canada Inc. (“121851”) filed against Montreal-based speciality pharmaceutical company Theratechnologies (TSX:TH) and one of its directors and a former president and chief executive officer.
The corporation 121851 alleged that Theratechnologies failed to disclose a material change while undergoing the Food and Drug Administration’s approval process of its flagship drug, tesamorelin, as required under section 73 of the Securities Act. To satisfy the criterion of “a reasonable possibility” of success, 121851 needed to demonstrate, after a preliminary examination of the evidence, the existence of a material change. The Court confirmed that for there to be a material change within the meaning of the Securities Act, it is important not only to determine whether the information has had a significant effect on the security’s market price, there must also have been a change in the business, operations or capital of the issuer.
“This is a tremendous victory for our client Theratechnologies and public companies in general. As a precedent -setting case in Quebec it will also have an impact on similar cases pending at the Supreme Court of Canada,” said Montreal litigator and partner Pierre Y. Lefebvre who argued the case along with associate Philippe Charest-Beaudry.
“This important decision is a reminder of the continuous disclosure requirements of public corporations and clearly defines the burden to be met by investors seeking authorization to bring a class action under the secondary market liability regime of the Securities Act,” added Philippe Charest-Beaudry.
The Fasken Martineau team that represented Theratechnologies was led by Montreal litigators Pierre Y. Lefebvre and Philippe Charest-Beaudry.
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Fasken Martineau is a leading international business law and litigation firm. With more than 770 lawyers, the firm has offices in Vancouver, Calgary, Toronto, Ottawa, Montréal, Québec City, London, Paris and Johannesburg. For additional information, please visit the firm's website at www.fasken.com.