Omer, you make good points. It is likely only a matter of time before a writ is filed somewhere in connection with this situation. A shareholder class action suit is a logical development. The YBM case posits an interesting scenario - much of the stock is in the hands of mutual funds - the managers of which, and advisors to - may have their own reasons for taking no action. I can't recall a case, in Canada at least, where the fund investors sued the fund managers for negligence etc. It will be interesting to see how the fund situation unfolds. Perhaps there exists one or more funds that bought not because they are part of some insiders game on Bay Street or beyond. As far as small (or retail) investors go, unless the individual losses experienced are $50,000 - $100,000 or more, it's likely that a class action suit is the most cost efficient route. Potentially, as with Bre-X, there are brokerage houses - possibly even the TSE et al - that can be held liable. It all depends upon how you invested, who advised you, what you based your investment decision on etc. etc. Are there any lawyers on this thread?
The bottom line is, you're right. It's important for investors to start thinking about such matters. And I agree with you, Burne, off the top this is a far more serious situation than Bre-X in terms of who can be shown to have known information that was not disclosed to the general public. |
