March 16 (Bloomberg) -- Ian Lennox, former chairman of Canadian drug developer Labopharm Inc., agreed to pay C$37,000 ($32,100) in fines and costs to settle charges of illegal insider trading.

Lennox also agreed to attend a course in corporate governance and not to trade any securities in any company of which he is an officer or a director until he completes the course, or receives permission from an in-house lawyer, the Ontario Securities Commission, Canada's main stock market regulator, said in an e-mailed release today.

Lennox paid between C$3.78 and C$3.90 for 25,000 Labopharm shares on August 2, after a board meeting where a partnership agreement with a U.S. company was discussed, the OSC said in the statement to which Lennox agreed. On Aug. 15, Laval, Quebec-based Labopharm announced it signed a $170 million contract with Stamford, Connecticut-based Purdue Pharma Products LP. Labopharm shares surged 22 percent.

``Lennox may be deemed to have made a profit in the amount of C$21,333.33,'' the OSC said. ``The share purchase was done at a time when Lennox was in possession of a material fact that had not generally been disclosed and by his conduct Lennox has acted contrary to the public interest.''

Lennox didn't sell his shares. The shares fell 4 cents to C$7.75 by the 4 p.m. close of regular trading on the Toronto Stock Exchange today.

Lennox resigned from Labopharm's board Oct. 24. The OSC said he cooperated with the investigation.

Labopharm Chief Executive Officer James Howard-Tripp didn't immediately respond to a request for comment. Neither did Labopharm's outside spokesman Jason Hogan.

Lennox is also chairman of Victoria, British Columbia-based Stressgen Biotechnologies, a maker of treatments for genital warts.

To contact the reporter on this story: Joe Schneider in Toronto at jschneider5@bloomberg.net.

Last Updated: March 16, 2006 17:35 EST