Bennett Environmental has agreed to a review of its disclosure and reporting practices as part of a settlement agreement with the Ontario Securities Commission.

The company’s stock plunged by half in the 10 days following the July 2004 revelation about a contract to clean up soil from the Federal Creosote Superfund Site in New Jersey. The contract was for just a fraction of the 300,000 tonnes it had been telling the public about.

The OSC, in its statement of allegations, said Bennett Environmental knew in 2003 that another company was disputing the initial contract and the U.S. Army Corps of Engineers had withdrawn its support as a result.

Bennett Environmental did not disclose these facts until July 2004. The OSC said those contract developments were material and should have been reported immediately.

As part of its settlement, Bennett Environmental has agreed to submit to an independent third-party review of its reporting and disclosure procedures. It must implement any recommendations made.

The OSC did not fine Bennett Environmental, which co-operated with the OSC investigation.

Company CEO Allan Bulckaert has also settled with the OSC. The regultor said he sold 5,900 shares of Bennett Environmental between June 3, 2004, and June 7, 2004, while in possession of material inside information, thereby avoiding a loss of $64,150.

Bulckaert has agreed to make a payment of $64,150 to settle the case. The commission has not levied any further penalties, noting that he co-operated with the investigation

The OSC has levied insider trading allegations against two other company executives and has accused company founder John Bennett of making “misleading or untrue” statements to OSC staff.