Former Baffinland shareholders will go ahead with lawsuit
Ontario Securities Commission alleges Baffinland executives used privileged information
The lawyer behind a class action lawsuit launched by former Baffinland shareholders says his case will go ahead, no matter what the outcome of hearings at the Ontario Securities Commissions.
Hearings are set to resume today in the case of two directors of Baffinland Iron Mines charged with insider trading.
The Ontario Securities Commission alleges that Jowdat Waheed and Bruce Walter used privileged information to attempt their takeover of the company in 2010.
Waheed and Walter deny the accusations.
Earlier this year, the OSC held five weeks of hearings into the case. Several additional weeks of hearings are expected.
Witnesses will include lawyers involved in the transactions, from the industry, and Walter himself.
Closing arguments are expected to take place in late July.
"I think the outcome of that will have some, you know, some implications for the class proceeding but it certainly won't be determinative in any respect," said Michael Robb, a partner with the Siskinds law firm in London, Ont.
The class action suit alleged that shareholders did not get all the information they needed in a bidding war which led to the company's takeover.
Steel giant ArcelorMittal and Nunavut Iron Ore Ltd. were originally bidding rivals. They later joined forces to acquire Baffinland.
Robb says he's still seeking certification to proceed with the class action. He says the process could take several years.