Amaya told to disclose liability policies to class action plaintiffs

Canadian online gambling operator Amaya Gaming has lost a procedural skirmish in a class action suit brought by aggrieved shareholders.

In a ruling handed down last Friday, Quebec Superior Court Justice Babak Barin ordered Amaya to provide two representative plaintiffs with the company’s general liability, errors and omissions, and directors’ and officers’ liability insurance policies.

Amaya was hit with a number of shareholder class action lawsuits last spring – some in the United States, others in Canada – after former Amaya CEO David Baazov (pictured) was charged with illegal insider trading, including ahead of Amaya’s blockbuster deal to acquire the parent company of PokerStars in 2014.

The charges caused Amaya’s shares to lose one-fifth of their value in a single day. The class action suit claimed the insider trading charges had exposed deficiencies in Amaya’s internal controls and that Amaya had a duty to disclose Baazov’s stock trading activity.