(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 February 29, 2016, when the Defendants released the company’s Annual Information Form and Annual MD&A for its fiscal year ended November 30, 2015. The Plaintiff claims that these documents contained the above-mentioned misrepresentations. The Plaintiff further claims that corrective disclosures in respect of the impugned statements were released on July 26, 2017, and that following those disclosures the shares of Intellipharm traded on the TSX fell 45.48% in a single day of abnormally high trading volume.
A parallel class action in the United States has already been settled and approved in the U.S. District Court for the Southern District of New York. The parties have now reached a settlement, subject to approval by this Court, which will resolve the entire action for those who traded shares of IPCI on the TSX. Under the proposed settlement agreement, the action will be granted leave to proceed and certified for settlement purposes only, following which the Defendants will pay an all-inclusive sum of 10% of the value of the US proceeding. This percentage reflects relative trading volume of its securities between the TSX and Nasdaq.
The parties have agreed that for settlement purposes the class is to be defined as:
All persons, other than Excluded Persons, who acquired IPCI’s common shares listed on the TSX on or after February 29, 2016, and who held some or all of those common shares after the close of trading on July 26, 2017.
The hearing date for approval of the Settlement Agreement and cy-pres to the Windsor Law School Class Action Clinic, Windsor, Ontario. Information about the Class Action Clinic is available online at www.classactionclinic.com.