CannTrust Holdings Inc. Class Action

CannTrust Holdings Inc. Class Action

CannTrust Holdings Inc. Class ActionCannTrust Holdings Inc. Class ActionCannTrust Holdings Inc. Class Action


On January 28, 2020, Kalloghlian Professional Corporation, A. Dimitri Lascaris Law Professional Corporation, Henein Hutchison LLP, and Strosberg Sasso Sutts LLP were granted carriage of a proposed securities class action (the “Action”) brought on behalf of plaintiffs Patrick Hrusa and Dharambir Singh against (i) CannTrust Holdings Inc. ("CannTrust"), (ii) Eric Paul, Peter Aceto, Greg Guyatt, Ian Abramowitz, Mark Dawber, John Kaden, Mark Ian Litwin, Robert Marcovitch, Mitchell J. Sanders, Stan Abramowitz, Brad Rogers, Michael Ravensdale, Shawna Page, Illana Platt, Graham Lee, Brady Green, Andrea Kirk, Norman Paul ("Individual Defendants"); (iii) KPMG; (iv) Merrill Lynch Canada Inc., Citigroup Global Markets Canada Inc., Credit Suisse Securities (Canada) Inc., RBC Dominion Securities Inc., Jefferies Securities, Inc., and Canaccord Genuity Corp ("Underwriters"); and (iv) Cannamed Financial Corp. and Cajun Capital Corporation ("Selling Shareholders"). 

The Action was commenced in the Ontario Superior Court of Justice and is brought on behalf of the following group of investors (the "Class" or "Class Members"): (i) all persons and entities that acquired CannTrust's securities in its May 2019 primary market offering; and (ii) all persons and entities that acquired CannTrust's securities in the secondary market between June 1, 2018 and the close of trading on the Toronto Stock Exchange on September 17, 2019 (“Class Period”). 

The Action alleges that during the Class Period, CannTrust failed to disclose material information and made misrepresentations regarding (among other things) the compliance of its facilities with applicable laws and regulations.   The Action alleges that when the falsity of the information was revealed, the price of CannTrust securities dropped significantly, causing damages and loss to the Class Members.  On behalf of the Class, the plaintiffs seek to recover those losses from CannTrust, the Individual Defendants, KPMG, the Underwriters, and the Selling Shareholders.

The Action seeks relief for misrepresentation (under the common law and pursuant to Ontario Securities Act), negligence, oppression and conspiracy.  

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