Banks, Financial Services, Legislation, Lithuania

International Internet Magazine. Baltic States news & analytics Wednesday, 26.06.2019, 15:39

200,000 EUR fine for insider dealing for exec of Vilnius-listed dairies

BC, Vilnius, 21.05.2019.Print version
The Supervision Service of the Bank of Lithuania has concluded that Linas Strėlis, member of the board of AB Vilkyškių pieninė and AUGA group, AB, has used inside information to enter into transactions on the acquisition and sale of shares of AB Žemaitijos pienas. In addition to this, he has involved his family members in such unlawful transactions as well. Therefore, Linas Strėlis has violated the prohibition against the use of inside information, set out in the EU Market Abuse Regulation, informed Bank of Lithuania.

The Supervision Service of the Bank of Lithuania has concluded that Linas Strėlis, member of the board of AB Vilkyškių pieninė and AUGA group, AB, has used inside information to enter into transactions on the acquisition and sale of shares of AB Žemaitijos pienas. In addition to this, he has involved his family members in such unlawful transactions as well. Therefore, Linas Strėlis has violated the prohibition against the use of inside information, set out in the EU Market Abuse Regulation.


On 30 April 2018, AB Žemaitijos pienas announced through the Nasdaq Vilnius that in June 2018 UAB Baltic Holding would acquire more than 5 mln shares of AB Žemaitijos pienas from shareholders acting under a joint activity agreement (Investors’ Association, AB Invalda INVL and other companies).

Linas Strėlis has taken part in the negotiations and, being aware of precise details on their progress and the achieved results as well as on the agreed selling price ranges, together with his family members conducted transactions on the shares of AB Žemaitijos pienas (which have been acquired in the regulated market and subsequently sold to UAB Baltic Holding). By taking such actions, he breached the prohibition to use inside information when engaging in transactions and to induce other persons to engage in insider dealing. 

Therefore, by resolution of the Board of the Bank of Lithuania, Linas Strėlis was imposed a 200,000 EUR fine. 

Following the EU Market Abuse Regulation, the use of inside information may be punished by a fine of up to 5 million EUR. In Lithuania, the provisions of the Market Abuse Regulation apply from 28 June 2017. The Bank of Lithuania has repeatedly drawn market participants’ attention to the changed legislation and sanctions to be imposed for non-compliance with the requirements set out in this Regulation.

Linas Strelis describes the fine as "absurd", but says he does not know yet if he will contest it in court, writes LETA/BNS. 


"I regard it as absurd. The deadline (for appeal) hasn't yet passed," Strelis told. "All appeals cost money. The pros and cons need to be weighed up". 

 

"There are no such precedents in Lithuania and abroad, to (my) lawyers' knowledge," he added. "A precedent is being created in this case and this has to be looked at from this point of view."






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