Mega Brands insider trading allegations dismissed
Mega Brands Inc. says Quebec's administrative tribunal has dismissed insider trading allegations filed last year against several toy maker executives by the province's securities regulator.
L'Autorité des marches financiers was claiming nearly $6.5 million for allegedly trading company stock based on non-disclosed information about a boy who died after swallowing a magnetic part that became detached from one of its toys.
The information was originally part of a complaint filed in Ontario by the former owners of Rose Art, who sold their business to the Montreal-based company in 2005.
The Quebec regulator said last year that its own nearly two-year investigation wasn't prompted by any such complaint from the Rosens.
Mega Brands chief executive Marc Bertrand had denied the accusations and said he was confident of a favourable outcome when all the facts are disclosed.
Its chief legal officer Mark Girgis had said the company was not subject to the proceedings, which were seeking the reimbursement of option proceeds to Bertrand, his brother Vic and two former executives, along with $1.62 million in fines.
The toy maker is slowly recovering from near bankruptcy caused by several recalls of magnetic toys that were part of the Rose Art acquisition.