Sigma Lithium (SGML) has announced the termination of its former co-CEO due to share trading during a blackout period. This move comes amid a series of legal battles and a management overhaul at the Brazilian lithium mining company.
Calvyn Gardner, who shared the CEO role with Ana Cabral-Gardner until January 2023, was let go following undisclosed share transactions ahead of Sigma’s earnings report. The company’s communication in July highlighted the issue, while Gardner’s legal team denied any wrongdoing in an August response.
Insider Trading Allegations and Legal Disputes
Gardner’s sale of 500,000 shares for approximately $13.3 million raised questions about the use of non-public information. Legal experts clarify that while trading during a blackout isn’t illegal, leveraging undisclosed material information is a breach of securities law.
Corporate Response and Regulatory Silence
Sigma Lithium’s lack of comment on its insider trading policy contrasts with the silence from Canadian and U.S. securities regulators regarding potential violations and ongoing investigations.
Boardroom Tensions and Aftermath
The incident has exposed underlying conflicts within Sigma’s leadership, leading to Gardner’s legal actions against his estranged wife and the company. Sigma’s counter-lawsuit in New York accuses Gardner of document misappropriation, a claim he has yet to address publicly.
Company Website: https://www.sigmalithiumresources.com
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