What is the current state of the law on allegations of stock manipulation?
Alberta, Canada
The following excerpt is from Hi-Alta Capital Inc. v. Montreal Trust Company of Canada, 2005 ABQB 224 (CanLII):
Clark J. dealt with the situation in which allegations amounting to fraud, which stock manipulation, most clearly is, in Lewis v. Inter Provincial Parts and Equipment Inc. [1996] A.J. 977 at paragraph 2: “The general rule with respect to allegations of fraud is that if you allege it and do not prove it, you will be penalized with costs”.
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