Public companies in Canada can reasonably expect a degree of scrutiny by market participants. But perhaps no class of commentator can create more anxiety to a public company than a well-known short-seller issuing a highly critical report. As we have seen in Canada, such reports have resulted in the total collapse of major public companies.
Canadian companies have yet to find a clear legal path to address short-sellers who issue reports containing facts the company believes to be untrue. To get an overview of short selling in Canada and what recourse may be available to companies against short-seller attacks, download this paper.