The Ontario Securities Commission has ordered officer and insiders of Research in Motion Ltd., including co-CEOs Jim Balsillie and Mike Lazaridis, to stop trading in the company’s stock after it missed financial reporting deadlines.
“RIM did not file the second-quarter disclosure documents by the prescribed deadline under Ontario securities law, namely Oct. 17, 2006,” and has not filed them since, the OSC said in an order dated October 24.
“It would be prejudicial to the public interest to allow the respondents to trade in the securities of RIM until such time as all disclosure required by Ontario securities law has been made by RIM,” the OSC said.
The order prohibits the RIM insiders from trading in the company’s stock until two full business days after the OSC receives up-to-date filings.
An OSC hearing into the matter is scheduled for November 7.
RIM disclosed Friday that the U.S. Securities and Exchange Commission has asked it to voluntarily provide documents and information related to its stock-option grants and practices.
The company, which announced four weeks ago that it had voluntarily begun a management-initiated review of its accounting practices and financial statements going back several years, said it intends to comply with the SEC’s request.