Gaffes by the Quebec’s financial watchdog prompted a Quebec judge to stay charges of insider trading and market manipulation against former online gambling mogul David Baazov and his co-accused.
Insider trading
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Quebec judge stays insider trading trial against former Amaya CEO
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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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Insider trading ruling highlights differences between Quebec and the rest of Canada
A ruling that dismissed allegations that a former chief executive officer improperly profited from inside trading nearly a decade ago 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 (Act).
“It’s an important decision in the sense that it is one of the only, if not the only case in Quebec, where there is a judgment following a civil action based on an allegation of insider trading,” noted Raynold Langlois, who successfully defended Claude Chagnon against an action seeking damages of more than $23 million brought by Quebecor Media Inc. and Vidéotron Group Ltd.