Morganti & Co. is successful in getting claims arising from a private placement certified

January 29, 2018.  The Firm was approached investors in a private placement offered by a small Toronto-based company. They allege that they were mislead as to management’s intention to co-invest and how the funds were going to be used.  Among the claims that were certified, the investors are seeking the return of their capital plus interest and the costs of the litigation.  “My client is very pleased that within less than one year of issuing the claim the causes of action have been certified.”

Morganti & Co., P.C. enters Bay Street Market for Associates’ Salaries

January 2, 2018.  Morganti & Co., P.C. has announced that it has increased first year associate base-salaries to $100,000, and has adopted a five-year track to become a principal at the Firm.   Eli Karp, the Firm’s newly elected principal and director, adds that the new compensation structure reflects a continued and thorough commitment to recruiting and hiring the most capable and insightful young lawyers willing to put in the extra mile for clients and other members of the Firm.

Morganti & Co., P.C. secures ruling that protects Canadian investors that purchase securities on foreign stock exchanges

December 20, 2017.  In Paniccia v. MDC Partners, Inc., et al, 2017 ONSC 7298, the Ontario Superior Court dismissed the defendants’ attempt to restrict the investor class to investors that purchased the shares domestically on the Toronto Stock Exchange.  Justice Perell agreed with the investors, and in doing so found the defendants’ expert Professor John Coffee Jr.’s evidence unhelpful, that the provincial laws were created to protect Canadian investors’ purchases of shares purchased on domestic and foreign stock exchanges.  Andrew Morganti, the Firm’s managing principal, states that “this outcome was consistent with the Firm’s previous success in Kaynes v. BP PLC, 2013 ONSC 5802 and 2016 ONCA 601.  The provincial courts recognize that Canadian investors need protection from foreign and multinational corporations that mislead them in investment decisions.  Simply put, Canada does not follow the U.S.’s Morrison v. National Australian Bank.”  The investors’ expert was Professor Adam Pritchard, University of Michigan Law School.

The investors are represented by Andrew Morganti, Eli Karp, and Hadi Davarinia.

Investors in Mining Stocks Strike Another Victory in Court

December 20, 2018. Morganti & Co., P.C. announces that the Ontario Divisional Court has denied the defendants’ motion to appeal Justice Belobaba’s decision granting the investors leave to proceed to advance to trial asserting their provincial Securities Act claim found at Wong v. Pretium Resources Inc., et al., 2017 ONSC 3361.

The Courts have concurred with Andrew Morganti’s opinion that a mining company cannot withhold adverse news about mining operations on the premise that management is optimistic that the adverse news may never come to fruition.

Andrew Morganti is now constructing a team of trial lawyers to co-represent the investors, regardless of residency, that purchased Pretium Resource’s securities between July 23 and October 9, 2013. Mr. Morganti adds that the trial lawyer team will include a few of the top trial lawyers across Canada.

“This is a great result for the global investor that purchases the securities of Canadian mining companies. With this law in place, the securities of Canadian mining companies should earn a premium on their valuations.”

Ontario Court certifies claim against Hycroft Mining Corporation

January 8, 2018.  The Ontario Superior Court of Justice released an order certifying a claim against Hycroft Mining Corporation (“Hycroft”) on behalf of all investors that purchased Hycroft’s pursuant to the May 9, 2013 secondary public offering. Lawyers Eli Karp and Hadi Davarinia are advancing the proceeding into discovery towards a trial of the common issues of whether Hycroft omitted material facts about the operational problems at the Lewis Leaching Pad from the prospectus associated with the Offering resulting in investors over paying for the securities offered by this prospectus.