Toronto, Canada / Bloomberg: Canada’s top court has ruled that investors can pursue a class action lawsuit against Vancouver-based Lundin Mining Corp. for failing to promptly disclose a rockslide at its Candelaria copper mine in Chile, reaffirming the obligations of public companies to keep shareholders informed.
The Supreme Court of Canada overturned a lower court’s narrow interpretation of “material information,” which would have limited investors’ ability to sue. The case centers on a 2017 rockslide where up to 700,000 metric tons of waste fell due to pit wall instability. Lundin Mining disclosed the incident nearly a month later, on November 29, 2017, reducing its 2018 production outlook by 20%. Following the disclosure, Lundin’s stock fell 16%, wiping out over C$1 billion ($715 million) in market value.
Expert Reactions
Doug Sarro, assistant law professor at the University of Ottawa, emphasized that the ruling reinforces timely disclosure of material events:
“When something internal happens within your business and it’s important to investors, you should disclose that immediately.”
Michael Thom, managing director of CFA Societies Canada, said the decision is positive for both investors and markets, clarifying that companies are best positioned to understand the significance of events affecting their operations.
A lawyer for Lundin Mining stated the company would not comment on the Supreme Court’s decision.
Impact on Public Companies
The ruling sets a clear precedent for public companies, highlighting that delays in disclosing material events can lead to shareholder litigation. Experts say it strengthens investor protections and reinforces corporate transparency obligations in Canada’s capital markets.
