Summary:
This action has been certified as a class action against the defendants. The certified class proceeding seeks compensation on behalf of shareholders who suffered losses in the secondary markets as a result of alleged misrepresentations in disclosures. The alleged misrepresentations relate to, among other things, the company’s involvement with the Terra blockchain and its associated digital assets. The claim alleges that the public correction of the alleged misrepresentations led to a stock price decline of over 40%. The defendants are Galaxy Digital Holdings Ltd., Michael Novogratz and Alex Ioffe.
Class Members
The class consists of all persons and entities, wherever they may reside or be domiciled, who acquired Galaxy shares on the secondary market from May 17, 2021 through May 6, 2022. Certain individuals and entities are excluded based on their relationship with the defendants.
Key Documents and Developments
- December 8, 2022: Plaintiff has filed a statement of claim against defendants alleging violations of securities laws involving misrepresentations to investors.
- April 10, 2023: Plaintiff has filed an amended statement of claim against defendants alleging violations of securities laws involving misrepresentations to investors.
- August 28, 2023: Plaintiff has filed a second amended statement of claim against defendants alleging violations of securities laws involving misrepresentations to investors.
- May 5, 2025: Plaintiff has filed a Fresh as Amended Statement of Claim alleging violations of securities laws involving misrepresentations to investors.
- June 8 – 11, 2026: The Court heard arguments on the plaintiff’s motions to certify the action as a class proceeding and grant leave to pursue the claims.
- August 27, 2026: The decision has been released. In Banach v. Galaxy Digital Holdings Ltd., 2026 ONSC 4534, the Ontario Superior Court of Justice has granted the plaintiff leave under s. 138.8 of the Securities Act to pursue statutory secondary-market misrepresentation claims under s. 138.3 and certified the action as a class proceeding under s. 5(1) of the Class Proceedings Act, 1992. The leave and certification decision permits the claims to proceed. It is not a final determination that any defendant made a misrepresentation, is liable to the class, or must pay damages.
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