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Another Investment Gone Up in Smoke: Where are the Regulators?
(April 13, 2023). The Ontario Superior Court of Justice, Honourable E.M. Morgan, issued a direction that he will refrain from further motion practice so the representative investors in the 4 Canadian class actions can prepare to resolve all the claims on behalf of all investors that purchased Wayland Group Corp.’s securities in offerings from 2017 and 2018, […]
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Shareholders of Auxly Cannabis Group Inc. get access to Internal Documents: The truth will be exposed!
(March 8, 2023) On behalf of shareholders, Class Counsel have been successful in reaching a Discovery Plan with Auxly Cannabis Group Inc. (“Auxly”) whereby it will turn over internal documents and emails of Chuck Rifici, Hugo Alves, and other insiders. Previously, FSD Pharma, Inc. produced hundreds of pages of internal documents relating to its failed joint […]
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Wayland Group Corp. (F/K/A, Maricann): Ontario Court Grants Access to the Court to Investors
(June 14, 2022) The Ontario Superior Court of Justice, the Honourable E.M. Morgan, J., granted the investors motion to direct the register of the court to note Wayland Group Corp. (“WAYL”) in default pursuant to Rule 19.01(1) of the Rules of Civil Procedure. The investors’ causes of action are two-fold: (a) relating to WAYL’s securities […]
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Wayland Group Corp. (f/k/a, Maricann): Quebec Court Quick to Protect Québécois Investors
(May 5, 2022) Wayland Group Corp., (“WAYL”) filed papers seeking bankruptcy protection and it was liquidated by selling assets for pennies on the dollar ~ and back to the same sellers! Investors lost. The Court approved and issued a “Stay of Litigation” so that investors could not advance their claims for damages. On February 28, […]
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Ontario Division Court unanimously agrees to allow investors’ claims to advance against Auxly Cannabis Group, Inc.
(November 2, 2021) The Ontario Superior Court of Justice – Divisional Court (Justices Swinton, Sachs, and Favreau), 2021 ONSC 7117, have allowed the investor claims against Auxly Cannabis Group, Inc. to proceed forward into discovery and trial by denying the appeal of Justice Morgan’s straight-forward (tell-it-how-it-is) decision granting investors leave to proceed with a statutory […]
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U.S. Securities and Exchange Commission Warns Investors investing in China-based companies
(July 30, 2021) The U.S. Securities and Exchange Commission (“SEC”) has identified a number of China-based companies raising capital through offshore shell companies. In a number sectors in China, companies are not allowed to have foreign ownership and cannot directly list on stock exchanges outside of China. Some of these companies have gotten around the […]
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Intellipharmaceutics International, Inc., Shareholder Class Certification and Settlement
(June 25, 2021) The Ontario Superior Court of Justice (Justice Morgan) certified a Class of investors that purchased Intellipharmaceutics International, Inc.’s securities (“IPCI”) listed on the Toronto Stock Exchange and scheduled a hearing date to approve a Settlement Agreement between investors and IPCI. The Plaintiffs allege that Intellipharm’s value and share-price were artificially inflated after […]
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Auxly Cannabis Group Inc., Investors allowed to proceed into discovery
(June 16, 2021) The Ontario Superior Court of Justice has granted investors’ motion to allow them to proceed into discovery finding that there is a reasonable possibility that Auxly (“XLY”) released its 3Q 2018 MD&A with misrepresentations about its relationship with FSD Pharma Inc., (“HUGE”) and the status of the cannabis production facility it was […]
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Hycroft Mining Corp., Investors to collect funds: Access to Justice = Class Certification
(April 26, 2021) We believe this certified shareholder class action is one of the longest running and complex (i.e., involving the bankruptcy court and multiple contested motions, including at the Court of Appeal) Primary Market (pursuant to a prospectus) shareholder class actions in Canada – visits to the bankruptcy court, adding investment banks, a half-dozen […]
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Colt Resources, Inc., Investors to Collect Funds: Micro-Cap Investors have rights too
(April 15, 2021) The Ontario Superior Court of Justice (Justice Morgan) approved the Settlement Agreement between investors and Colt Resources, Inc. (“GTP” and “P01”), that will require Colt to convey $950,000, inclusive of costs, legal fees, and taxes, to investors ($50,000 below the statutory liability limit and approximately $200,000 more than the amount improperly taken […]
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FSD Pharma, Inc., Investors to collect funds
(February 4, 2021) Today the Ontario Superior Court of Justice (Justice Morgan) approved the Settlement Agreement between investors and FSD Pharma, Inc. (“HUGE”), that will require HUGE to convey $5.5 million, inclusive of costs, legal fees, and taxes, to investors. Investors received more than the available directors and officers insurance. The Claim alleges that the […]
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Quebec courts recognize investors’ allegations of insiders manipulating stock prices
The law firms of Faguy & Co. (Montreal) and Morganti & Co. (Toronto) announce that on August 7, 2020, the Honorable Mr. Justice Duprat, the Superior Court of Québec authorized the bringing of a class action against Mr. David Baazov in Court File No. 500-06-000859-179. The allegations made in the class action have not been […]
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“You can’t handle the truth!”
Markets go up. Markets go down. Investors beware? An investor accepts the risks of normal business successes and failures; but investors should never accept the risk that a company is withholding adverse facts from investors. Companies submit that they do not want to overwhelm investors with ordinary business operations that could cause confusion, so they decide […]
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Investment Banks’ Responsibilities: Court of Appeal for Ontario endorses claim
(June 17, 2020) Today the Court of Appeal for Ontario (MacPerson, Pardu and Huscroft JJ.) released an Endorsement affirming the Divisional Court’s decision, dated January 6, 2020, concerning the responsibilities of investment banks and certifying that offering memoranda and prospectuses contain accurate information, to the best of their knowledge. Today’s decision affirms the reversal the […]
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Former Newstrike Brands Ltd. investors lodge claim against HEXO CORP.
(February 14, 2020) Morganti & Co. has been retained by multiple investors that held shares of Newstrike Brands Ltd. (“Newstrike”) to advance a statutory and the related common law claim against HEXO Corp. The claim alleges that HEXO Corp. induced Newstrike investors to rely upon misrepresentations about HEXO Corp.’s Quebec Supply Agreement in making the […]
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