As the number of Canadian securities cases continues to grow, issues regarding the materiality of alleged misrepresentations are likely to arise more frequently. Reporting issuers who make misrepresentations to the market may face liability under Canadian securities laws if those misrepresentations are found to be material. Where a misrepresentation can be shown to be immaterial, there is no liability. While in some cases, whether an alleged misrepresentation was material or not may appear to be obvious on its face, in other cases materiality may not always be so obvious. In this article from The Canadian Class Action Review, NERA Vice President Bradley A. Heys describes some of the ways in which economic experts assist counsel, their clients, and the trier of fact by using the tools of finance and valuation theory combined with econometric analysis to provide a relevant and helpful framework for addressing questions of materiality.