TELUS Digital investor suit proceeds as unified case

A British Columbia Court of Appeal ruling on September 15, 2026, has allowed a shareholder class action lawsuit against TELUS International to proceed as a unified case, denying TELUS‘s attempt to split the proceedings.

The lawsuit stems from a claim filed on December 12, 2024, alleging that TELUS Digital and its officers misled investors about the profitability of its AI-driven services. According to the claim, these services were less profitable than the company’s traditional business, a fact not disclosed until the 2024 earnings reports.

The shareholder bringing the case purchased TELUS Digital stock between February 16, 2023, and August 1, 2024. The lawsuit includes three claims: a securities-law violation for misleading investors, a claim of unfair treatment of shareholders, and a negligence claim.

A key issue was whether the request for permission to proceed with the securities-law claim and the request to certify the class action should be heard together. In August 2025, a case management judge ruled in favor of a combined hearing, but TELUS appealed, arguing that permission must be granted first.

The Court of Appeal upheld the decision, with Justice Riley stating that the case management judge had the discretion to consider the costs and potential delays of separate hearings. This ruling signals a flexible approach by Canadian courts in scheduling such disputes, rather than adhering to a rigid procedural path.

For those tracking TELUS Digital, this decision means the permission and certification fights will occur simultaneously, potentially streamlining the process. However, it does not prejudge the merits of the underlying dispute.

This development highlights the ongoing scrutiny of AI-related disclosures and the importance of accurate financial communications. The case also shows the growing complexity of shareholder litigation in Canada, where procedural decisions can significantly affect the timeline and outcome of disputes.