Insider trading can be a slippery slope for in-house counsel

When Claude Chagnon, a former chief executive officer of one of Canada’s largest cable companies, was sued for more than $23 million for allegedly improperly profiting from insider trading nearly a decade ago, one of his lines of defense was to put the blame squarely on the shoulders of an in-house counsel.

It was not a compelling argument. In a ruling that provides guidance over allegations of insider trading, clarifies insider trading rules applicable to corporate officers and sheds light on the meaning of privileged information under the Quebec Securities Act, Quebec Superior Court paid little heed to the claim that the in-house counsel was partially at fault because he breached his professional duty.

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This story was originally published in In-House Counsel magazine.

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