Lawrence E. Ritchie
Jan 28, 2021
Regulators weighing taking action in the wake of Reddit posts that encouraged bidding up the prices of silver must consider whether the participants are exercising their free speech rights versus colluding to expressly manipulate the share price of a company, Osler partner Larry Ritchie tells The Globe and Mail. In his article, author Niall McGee explores the market volatility being experienced after retail investors bid up the prices of silver and precious metals after being incited by posts on Reddit. According to the article, “while blatant manipulation of the share price or a company is illegal under securities laws, it is unclear whether there are firm legal grounds to take action against individuals making anonymous posts on internet chatrooms.” Larry, Chair of Osler’s Risk Management and Crisis Response Group and former vice-chair of the Ontario Securities Commission, says the approach that regulators may or may not take is not clear-cut.
“A lot of it will depend on what the intent of the parties are,” Larry tells The Globe and Mail.
If you subscribe to The Globe and Mail online, read author Niall McGee’s article, “Silver, precious metal mining shares the latest hit by Reddit-fuelled volatility,” on January 28, 2021, for more information.