November 5, 2021 News

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 claim of misrepresentations.  This Decision, which also takes aim at hired-gun experts for being too rigid and not recognizing the realities of investors’ trading activities, is identified as Gowanlock v. Auxly Cannabis Group, Inc., 2021 ONSC 4203.  

The investors are represented by Andrew Morganti, Albert Pelletier, and Charlotte Harman. “It is likely that our appellate courts recognize that retaining and upholding investors’ rights restores confidence in Canadian capital markets and levels the playing field between retail investors and corporate insiders,” says Andrew Morganti, with over 2 decades of experience representing retail and institutional investors in Canadian and U.S. litigation.