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Compensation for the Lack of Disclosure

Posted in Miscellaneous, Submitted by Trading Critic on Wed, 2006-09-20 10:04.
Imagine getting compensation for the lack of disclosure by a company listed on a public stock exchange.

Imagine getting compensation for the lack of disclosure by a company listed on a public stock exchange. That's what happened on the 6th of September 2006 with Jubilee Mines (JBM), a Western Australia nickel miner. In a precedent decision, Jubilee was ordered to pay a former shareholder almost $2 million because the company failed to disclose to the market an important nickel find on its tenement. After ten years in the courts, the Supreme Court has found that the nickel miner should have released details of the newly discovered metal deposit when they become first aware of it back in September 1994. The former shareholder was the family trust of Kim Riley - the company's former managing director began selling Jubilee shares in that same month. The company only disclosed the find in 1996, and by that time the trust has released their entire share holding. Jubilee will be investigating avenues for an appeal.

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