The Ontario Securities Commission will hold another hearing today into a possible settlement agreement with Biovail Corp. founder and chairman Eugene Melnyk.

Melnyk has been accused of failing to disclose more than 5,000 trades in Biovail shares worth US$1.3 billion that were conducted by four trust accounts in the Cayman Islands between 2002 and 2004.

OSC staff negotiated a settlement with Melnyk earlier this month, but the deal was rejected by a panel of OSC commissioners at a hearing last week. The terms of the settlement were not disclosed.

The new settlement agreement will also remain confidential until it is approved by the commission.

Melnyk revealed Wednesday he will step down as Biovail chairman at the end of June, saying he wants to spend more time with his family and focus on other business interests.