On August 26, 2014, a panel of the Ontario Securities Commission
(the "panel") released its highly anticipated decision involving allegations of insider
trading, tipping and conduct contrary to the public interest in
connection with the hostile takeover bid of Baffinland Iron Mines
Corporation by Nunavut Iron Ore Acquisition Inc. in 2010. The
decision dismissed all allegations against the respondents, once
again demonstrating the difficulties in prosecuting such cases.
The Allegations
The facts of the case are relatively straightforward. Between
February and April 2010, Baffinland engaged the services of a
consultant to provide strategic advice to the Board and CEO. During
the consultancy period and after, certain confidential information
was imparted to the consultant by the company, including
information relating to Baffinland's negotiations with
ArcelorMittal regarding a potential joint venture. In early
September 2010, the consultant, together with the
