FSD Pharma Inc. (CSE: HUGE, OTC: FSDDF, FRA: 0K9)
Ontario Superior Court of Justice, Court File No.: CV-19-00614981-00CP
This securities class action relates to the Defendants releasing core and non-core documents which contained omissions of material fact about the status and delays of the build-out of FSD Pharma’s 620,000 square foot building in Cobourg, Ontario (the “JV Facility”), which was to be renovated pursuant to an agreement between FSD Pharma and Auxly Cannabis Group, Inc (“Auxly”). The Plaintiff further alleges that the value and price of FSD Pharma’s Class B common shares were artificially inflated after the Defendant released each impugned statement alleged to contain a misrepresentation.
On January 8, February 6 and February 8, 2019, the Defendants released statements revealing that Auxly was materially behind schedule and the JV Facility phase one build-out would not be completed until sometime during 2019, that the agreement with Auxly had been abruptly terminated, and that FSD Pharma had terminated its CEO. These public corrective statements resulted in the price for FSD’s Class B common shares dropping in price from $0.355 to $0.28 a share, a decrease of over 21%.
Claim or Motion for Authorization issued: February 22, 2019
Class Period: September 20, 2018 to and including February 8, 2019
Judge: The Honourable Edward M. Morgan
Motion Record in Support for Statutory Claim Filed: The hearing for “leave to proceed” is scheduled for May 5-6, 2020
Shareholders’ Canadian Counsel: Albert Pelletier, Morganti & Co.
Corporate Defendants’ Canadian Counsel: Samuel Robinson, Stockwoods LLP