Alio Gold successfully defends securities class action at common issues trial

McCarthy Tétrault LLP successfully defended Alio Gold Inc. (“Alio Gold”) in a securities class action common issues trial. On August 14, 2026, the BC Supreme Court ruled in favour of Alio Gold on all certified common issues and dismissed the action, following an eight-day summary trial.

The case, 0116064 B.C. Ltd. v. Alio Gold Inc., 2026 BCSC 1545, centered around Alio Gold’s anticipated gold production in advance of its acquisition of another mining company, Rye Patch Gold Corp. (“Rye Patch”) in May 2018. The plaintiff’s theory was that Alio Gold fraudulently or negligently maintained public guidance indicating it expected to produce 90,000 to 100,000 ounces of gold from its San Francisco Mine in 2018, which artificially inflated Alio Gold’s share price and depressed the value Rye Patch shareholders received in the acquisition. The Court rejected this theory, finding instead that throughout the relevant period Alio Gold’s management had a reasonable basis to maintain guidance and made adequate disclosures about the operational issues the San Francisco Mine was facing, and that Alio Gold did not know that guidance would not be met until well after the transaction with Rye Patch closed.

This is one of only a few certified class actions in Canada that have proceeded to a full trial of common issues. Previous matters include Turpin v. TD Asset Management, 2022 BCSC 1083, in which McCarthy Tétrault successfully defended TD Asset Management, and Wong v. Pretium Resources, 2021 ONSC 54 aff’d 2022 ONCA 549, in which McCarthy Tétrault successfully defended Pretium Resources Inc. and its founder.

Alio Gold was successfully represented by Owais Ahmed and Jessica Mank of McCarthy Tétrault LLP.