The Supreme Court of Canada says an investor's legal action against a mining company over its decision not to immediately publicize information about a production setback can proceed.
Just days after Canadian firm Lundin Mining Corp. detected wall instability at its open-pit mine in Chile in October 2017, a rock slide prompted the company to shut down part of the mine.
Lundin did not publicly disclose the events at the time but advised investors in a scheduled update about a month later.
The day after the update was issued, the price of Lundin’s securities on the Toronto Stock Exchange fell 16 per cent.
Investor Dov Markowich — who bought Lundin shares after the rock slide, but before it became public — sought permission to bring a case against the company under Ontario's Securities Act.
The Ontario Superior Court of Justice dismissed Markowich's motion but the Ontario Court of Appeal overturned the decision, leading the company to appeal to the Supreme Court.
Picture Courtesy: THE CANADIAN PRESS/Sean Kilpatrick
