(August 30, 2023) We are pleased to announce that the Ontario Superior Court of Justice (the “Court”) has scheduled a hearing to be held on November 14, 2023 the “Settlement Approval Hearing”) to approve a settlement among in Daniel Relvas v. Auxly Cannabis Group Inc., bearing Court File No. CV-19-00617136-00CP (the “Action”).
Background
The Action was commenced on behalf of persons and entities who purchased or otherwise acquired Auxly Cannabis Group Inc. (“Auxly”) common shares (TSX: XLY) and (FRA: 3KF) in the secondary market, on or after November 12, 2018, and held some or all of those securities until the close of trading on February 6, 2019.
In the Action it is alleged that during the Class Period, the Defendant made misrepresentations concerning material facts regarding the status of its project with FSD Pharma Inc. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario.
When the Company announced the problem ~ likely a material change ~ the share price dropped between $0.07 and $0.11 per share. Auxly has never recovered and is now a penny-stock but is managed by a former “Bay Street” corporate defender litigation lawyer.
The Commentary
The Defendant denies the allegations and makes no admission of liability in connection with the Settlement. It is also important to recognize that the Class Period is shorter compared to the shareholder Class Proceeding against FSD Pharma Inc. However, apples-to-apples with the time-period, the settlements are essentially of the same value, said Andrew Morganti, the lead counsel representing investors.
The Settlement
The terms of settlement (“Settlement”) include the payment of $4 million CAD on behalf of the Defendant, a full and final release of all claims that were asserted or could have been asserted against the Defendant by class members in the Action, and the Defendant’s express denial of any liability in respect of the claims alleged in the Action and of any kind whatsoever. The proposed Settlement Agreement may be viewed at https://bergermontague.ca/cases/auxly-cannabis-group-inc/.
If the Settlement is approved at the Settlement Approval Hearing, a further notice will be published which will include instructions on how Class Members can file Claim Forms online to participate in the distribution of the net settlement funds and the deadline for doing so.
The Class
If you acquired common shares of Auxly, on or after November 12, 2018, and held some or all of those shares until at least February 6, 2019, you will likely be entitled to participate in the settlement after the Court has approved it.
Objections
At the Settlement Approval Hearing, the Court will consider any objections to the proposed Settlement by the Class Members if the objections are submitted in writing before October 20, 2023 in the manner described in the Notice of Proposed Settlement of the Auxly Securities Class Action at https://bergermontague.ca/cases/auxly-cannabis-group-inc/.
Attending the Settlement Approval Hearing
Class Members may attend the Settlement Approval Hearing whether or not they deliver an objection. The Court may permit Class Members to participate in the Settlement Approval Hearing whether or not they deliver an objection. Class Members who wish for a lawyer to speak on their behalf at the Approval Hearing may retain one to do so at their own expense.
Notices
A similar notice was published across Canada in English and French. Berger Montague (Canada) also published a with DSW-Aktuell (Die DSW ist Miglied von BETTER FINANCE).
Questions
Berger Montague (Canada) PC is a law firm that investigates, litigates and resolves economic and financial disputes. You may learn more at www.bergermontague.ca
For further information: Questions for the Class Members’ lawyers may be directed to: Berger Montague (Canada) PC, 330 Bay Street, Suite 1302, Toronto, ON M5H 2S8, Tel: 647.598.8772 ext 2, Email: [email protected]