UPDATE: Eimskip Wants RUV Leak Investigated

Icelandic shipping company Eimskip said it had advised its attorneys to prepare a report to the police and request investigation of alleged leak of confidential information to Icelandic TV station RÚV.

“Eimskip is astonished by the coverage of RÚV in this context. Listed companies must follow laws and regulations on handling of insider information and distribution of such information is prohibited,” the company said.

The announcement comes in the aftermath of Eimskip’s refuting of media allegations against the company’s CEO as well as unnamed employees for breach of the competition law made by the station.

The Icelandic National Broadcasting Services (RÚV) said in a news coverage on 14 October 2014 that the CEO as well as certain employees of the company,  had been reported to the Special Prosecutors Office for alleged breach of Article 10 of the competition law.

The Icelandic Competition Authority, which launched  an investigation on the company in September 2013, said that it cannot confirm the coverage in RÚV’s Kastljós on Tuesday night.

The Competition Authority also emphasized that the investigation has not reached the stage where its conclusion can be predicted.

Eimskip said that in case of suspicion of illegal distribution of insider information, it is legally obliged to report on such behavior to relevant authorities. Therefore it has notified both the Icelandic Financial Supervisory Authority and Nasdaq Iceland of possible infringements.

“Eimskip has also sent a letter to both the Icelandic Competition Authority and the Special Prosecutor requesting all documents and data related to the said coverage of Kastljós on 14 and 15 October. The purpose is to be able to respond to the allegations made and to fulfill legal obligations towards Nasdaq Iceland and the Company’s shareholders,” the company added.

“The severity of the matter reflects in the fact that the company’s shares have received observation status by Nasdaq Iceland, which may cause the company, its shareholders and the market considerable damage.

There is a vast difference between a report and an indictment. Individuals are innocent until proven guilty by a court of law. The matter is still under investigation and uncertain whether an indictment will be issued. It is tragic that confidentiality cannot be upheld by regulatory authorities, resulting in leakage of confidential information to the media. Such practices are unfair and to not give the accused an opportunity to defend themselves,” Eimskip said.

Eimskip has requested information on the alleged breach of competition law and has in relation thereto twice appealed the decisions of the Icelandic Competition Authority to the Competition Appeals Committee.

On 30 September 2014 the Competition Appeals Committee rescinded in part the decision of the Icelandic Competition Authority dated 3 June 2014 and ordered the Icelandic Competition Authority to grant the company access to the documents within two weeks from the date of the ruling.

Eimskip received the documents on 8 October, which did not reveal the merits of the case.