(January 18, 2023) The Ontario Superior Court of Justice, the Honourable Justice Morgan of the Ontario Superior Court of Justice certified the action: Relvas v. Auxly Cannabis Group, Inc., Court File No.: CV-13-00617136-00CP (the “Class Action”) as a class proceeding against Auxly Cannabis Group, Inc. (“XLY”) and appointed Daniel Relvas as the representative plaintiff.
The substance of the litigation has not been adjudicated by the Court (i.e. that the Defendant made misrepresentations in its Management’s Discussion and Analysis and corresponding financial statement for the Three and Nine Months Ended September 30, 2018 on November 12, 2018, that were not publicly corrected until a news release on February 7, 2019). The Defendant denies the allegations.
If you purchased Auxly’s shares between November 12, 2018 and February 7, 2019, this Class Certification Order will affect your legal rights.
YOUR TWO OPTIONS:
- Do Nothing and Remain in the Class Action:
Class Members are automatically included in the action once certified if they do not opt-out. You do not need to do anything at this time to stay in the Class Action. If a settlement or any recovery or benefits are achieved for the Class and approved by the Court, you will be notified about how to ask for the portion to which you are entitled. You will be legally bound by all orders and judgments of the Court, and you will not be able to sue the Defendant on your own regarding the legal claims made in this case. You will NOT be required to pay any costs in the event that this Class Action is unsuccessful.
- Opt-Out of the Class Action:
All Class Members will be bound by all orders and judgments of the Court and any settlement reached unless they opt-out of the action. If you wish to pursue your own action or do not want to be bound by the outcome of the Class Action, you then must opt-out of this Class Action and act prior to the expiration of the limitation periods.
If you want to opt-out of the Class Action, you must fill out an Opt-Out Form (available above) and send it BEFORE MARCH 31, 2023 AT 5:00 PM (EST), by email to [email protected] or by regular mail or courier to at our office: 330 Bay Street, Suite 1302, Toronto, Ontario M5H 2S8.
On June 16, 2021, the Ontario Superior Court of Justice granted the Plaintiff leave to proceed with his statutory class action misrepresentation claims against Auxly Cannabis Group Inc. (“Auxly”) – Gowanlock v. Auxly Cannabis Group Inc., 2021 ONSC 4205.
This securities class action relates to Canadian cannabis company Auxly releasing its 2018 Q3 MD&A and other public documents which failed to disclose issues with the status of, delays to, risk of termination of, and accuracy of the completion date for the construction of an indoor cannabis facility to be located in Cobourg, Ontario (the “Facility”). Auxly had told the market the Facility was to become “the largest indoor cannabis facility in the world” and that it was “the most unique and important asset” in its portfolio of assets.
On February 7, 2019, Auxly announced that the construction project was terminated due to contractual breaches by its joint venture partner, infrastructure problems at the Facility, plus other issues, which the plaintiff alleges Auxly knew about, but said nothing about, when it released its Q3 MD&A on November 12, 2018. These public corrections of Auxly’s past misrepresentations caused immediate and significant damage to Auxly’s shareholders, resulting in Auxly’s stock price on the TSXV dropping by approximately 21% in just a few days.