Stockwoods lawyers Luisa Ritacca and Carlo Di Carlo successfully represented the Investment Industry Regulatory Organization of Canada (IIROC) in an application that Harrington Global Limited, a hedge fund, brought against it seeking a Norwich Order requiring production of certain information. The application related to the trading of a pharmaceutical company, Concordia International Corp. The shares of Concordia plummeted between 2016 and 2018. Harrington claimed that it suffered a loss as a result, and that this loss was caused by manipulative trading. IIROC, as the regulator of investment dealers that sell investment products, was in possession of certain information relating to Concordia as a result of its market surveillance function, as well as an investigation of trading of Concordia that it undertook. Harrington brought the application seeking an order that IIROC be required to provide it with this information.
The application was rejected. The Court noted, among other things, that the balance of interests favoured protecting IIROC’s status as a regulator and its ability to fulfill this role. This is a decision that is likely to have ramifications for other regulators. In particular, the rationale dismissing the application would be applicable to other regulators that seek to resist injunctive relief, particularly a Norwich Order.
A copy of the decision is here.