Lawyers seeing steep penalties in securities settlements — Canadian Lawyer

Craig Lockwood

Jan 4, 2019

A recent settlement agreement in which Katanga Mining Ltd. paid $28.5 million, plus costs of $1.5 million, is “instructional of how the Ontario Securities Commission (OSC) is particularly focused on emerging jurisdictions,” Osler partner Craig Lockwood tells Canadian Lawyer. In her article, author Anita Balakrishnan explores this settlement agreement and the decision to approve the settlement, Katanga Mining Limited (RE), 2018 ONSEC 59. The article explores the background to the decision and explains how Katanga operates copper and cobalt mining and refinery facilities in the Democratic Republic of the Congo. Craig, a partner in Osler’s Litigation Group, says this penalty was particularly large.

“The monetary penalties were significant and comparatively large relative to the past,” Craig tells Canadian Lawyer.  

Craig also adds that “generally speaking, any company that has business in jurisdiction with its own business norms must also comply with Canadian securities laws.”

He says that the unique facts of the case mean that there is not necessarily a “sea change” in terms of settlement sizes that companies can expect.

“My own view is that there was a matrix of facts that was very unique, so we can’t be too quick to say this resets the bar. Maybe it does,” Craig tells Canadian Lawyer. “But it’s too early in terms of drawing conclusions.”

For more information, read author Anita Balakrishnan’s article “Lawyers seeing steep penalties in securities settlements” on January 4, 2019 in Canadian Lawyer.