2016 Press Release. These statements advised the market that
some unknown concern about Perrault’s conduct may have existed
with respect to the Turcolt Investment.
 Had the Defendants complied with their disclosure obligations,29 there would have been no speculation required as to
linkage to Perrault’s conduct. The full corrective information
statement would have been before the market, instead of
a “storm warning” that created market speculation and arguably
caused a 22 per cent decrease in share value.
 In Swisscanto, the press release considered by Belobaba
J. said nothing about whether the prior sell-in revenue recognition approach was GAAP-complaint. The “passing reference” in
the press release was that “certain BlackBerry 10 devices that
were shipped in the quarter will not be recognized until those
devices are sold through to end customers” and that BlackBerry
was incurring a $1 billion inventory charge “primarily attributable” to BB Z10 devices (at paras. 16, 17 and 68).
 The defendants in Swisscanto took the same approach
as the Defendants in the present case, submitting that “a press
release about a change in revenue recognition beginning in
2Q14 is not a ‘correction’ of the revenue recognition in prior
quarters” and that “[t]here is insufficient correlation between
the alleged misrepresentation and the pleaded public correction”
(at para. 54).
 After setting out all of the principles discussed above,
Belobaba J. held (at paras. 68-71):
( i) “The pleaded public correction is sufficiently specific”;
( ii) “The decision to adopt the sell-through method for the BB10
in 2Q14 shares the same subject matter and is obviously
connected to the misrepresentation alleged”;
( iii) “The fact that Blackberry changed its accounting policy for
2Q14 is reasonably capable of revealing the alleged misrepre-
sentation that using the sell-in accounting method in earlier
periods was not GAAP-compliant”; and
( iv) “[T]he announcement by Blackberry that it would be
incurring a significant inventory charge in 2Q14 is also
connected to, and reasonably revelatory of, the alleged
29 Assuming it was material that the Turcolt Investment was unauthorized,
which is not at issue on the leave motion.