Corporations generally have an increasing burden to improve their social initiatives, environmental impact as well as accountability towards all third parties. Recently, the courts in Canada have rendered decisions that further increase the responsibilities of corporations in an area involving
Securities litigation and enforcement
The Securities Litigation and Enforcement blog published by Norton Rose Fulbright covers developments in securities regulation, enforcement actions, and litigation trends affecting capital markets and financial institutions. It addresses regulatory changes by bodies such as the SEC and DOJ, shareholder proposal processes, class action litigation related to securities, and cross-border enforcement issues. The blog also discusses compliance strategies, white-collar crime enforcement priorities, and the impact of evolving legal frameworks on securities brokerage and financial crimes. It serves as a resource for legal professionals and market participants seeking updates on securities law enforcement, regulatory policy shifts, and litigation risks.
Latest from Securities Litigation and Enforcement - Page 2
False or Misleading Public Statements Made by Reporting Issuers in the Tech Industry
Earlier this year, the Ontario Capital Markets Tribunal (the Tribunal), accepted a joint settlement agreement[1] submitted by Staff of the Ontario Securities Commission (Staff) and defendant Raymond Pomroy (Pomroy), who had been accused of making false or misleading statements…
Acceleration of Regulatory Scrutiny Towards Crypto Assets Trading Platforms
In the last year, Québec’s Financial Markets Administrative Tribunal (the TMF) has emphasized that crypto asset trading platforms must comply with all applicable securities and derivatives regulations. Otherwise, in accordance with the TMF’s mission to protect the public and to…
Quebec’s Financial Markets Administrative Tribunal imposes exemplary penalties and sanctions on individuals who committed insider trading violations in the midst of a going-private transaction
In Autorité des marchés financiers (AMF) c. Gauthier,[1] Quebec’s Financial Markets Administrative Tribunal (TMF) ruled that Philippe Gauthier (Gauthier) and Frédéric Racine (Racine) committed insider trading violations on the basis of privileged information related to the acquisition of Napec…
The Supreme Court of Canada provides needed clarity on the discharge (or survival) of Securities Commission-imposed sanctions in personal bankruptcy
Between February 2020 and January 2022, we authored three blog posts about whether Securities Commission-imposed administrative monetary penalties (AMPs) and disgorgement orders should be discharged in personal bankruptcies.
Those prior blog posts are linked here: February 6, 2020, March…
In-House Insider Trading
In light of the unprecedented shift to a “working-from-home-economy” due to the pandemic, employees need to be extremely careful with work-related information that can accidentally be shared with their household. Confidential or even material non-public information can involuntarily be shared…
Insider trading: the U.S. SEC’s “shadow trading” doctrine and its potential impacts in Canada
On April 5, 2024, in the case of the SEC v. Panuwat (Panuwat),[1] the U.S. Securities and Exchange Commission (the SEC) convinced a jury for the very first time of its “shadow trading” doctrine, according to which insider trading…
Fibrek Quebec Court of Appeal Highlights Importance of Market Prices in Dissent Right Valuation Proceedings
On February 2, 2024, the Quebec Court of Appeal issued its unanimous decision reducing the fair value of the Fibrek shares by 20% and emphasizing the importance of market prices in determining fair value.
Overview of the main facts discussed…
Quebec Court Enforces Penal Provisions of Securities Act in connection with “Initial Coin Offering” of “PlexCoin”
Last month, the Court of Quebec (Criminal and Penal Division) rendered its decision on the culpability of three defendants involved in the initial coin offering of the cryptocurrency known as “PlexCoin”.
Dominic Lacroix (Lacroix), the head of the PlexCoin project,…
Supreme Court of Canada recognizes cross-border challenges of modern securities regulation: the “Real and Substantial Connection” test applied in Sharp v. Autorité des marchés financiers, 2023 SCC 29
In Sharp v. Autorité des marchés financiers, 2023 SCC 29, the Supreme Court of Canada recognized the transnational nature of modern securities regulation in holding there was a “real and substantial connection” between alleged perpetrators of a “pump-and-dump” scheme…