The applicants, who lost $150 million investing in Concordia International Corp., applied for a Norwich Order against the Investment Industry Regulatory Organization of Canada (IIROC).
They sought trading data and client identities to identify short-sellers they believed conspired to illegally manipulate Concordia's share price.
The court dismissed the application, finding that while the applicants had a bona fide potential claim for civil conspiracy, they failed to satisfy the other criteria for a Norwich Order.
Specifically, IIROC's role as a regulator did not constitute being 'mixed up' in the wrongdoing, the applicants already had sufficient information to pursue claims, and balancing IIROC's regulatory duties and privacy interests against the applicants' interests favoured denying the order.
