On March 18, 2021, the Court of Appeal for Ontario ruled that a malicious prosecution lawsuit against the Ontario Securities Commission and three of its employees can proceed. One of the appellants in the case, Mr. Sam Qin, and various entities he controlled, were involved in the development and management of solar energy projects in Ontario and elsewhere. Mr. Qin attempted to raise capital for his projects using a program sponsored by the Ontario government. Neither Mr. Qin, nor any of his companies, were registered to sell securities and no prospectus was filed in connection with Mr. Qin’s efforts to raise funding. After certain proceedings, the OSC dismissed the allegations, finding that the appellants were not mainly engaged in the sale of securities and were not required to register under the Securities Act (Ontario).
In their statement of claim, the appellants argued that the allegations were false, made without reasonable and probable cause, and made for a collateral and improper purpose.