Securities versus civil liability

摘要

The Quebec Court of Appeal recently upheld a lower court judgment that dismissed the recourse of a group of investors against an accounting firm that was involved in preparing a prospectus filed in connection with a real estate investment project. In Allaire v. Girard, in which judgment was rendered on August 12, 2005, the 72 appellants had sought damages against the accounting firm for the losses they sustained following their investment. Among other things, this decision highlights the advantages provided to investors by certain statutory recourses — as compared with recourses arising under the ordinary rules of law — when instituting proceedings against accountants.