TORONTO--(BUSINESS WIRE)--Strosberg Sasso Sutts LLP announced today that a proposed class action has been commenced against CannTrust Holdings Inc. (“CannTrust”) (TSX: TRST) and some of the company’s officers and directors.
The proposed class action has been filed in the Ontario Superior Court of Justice on behalf of all persons, excluding certain persons associated with the defendants, who, during the period from October 1, 2018 to July 5, 2019:
(1) purchased or otherwise acquired securities of CannTrust on the TSX or alternative Canadian exchanges; and/or
(2) except residents of the United States of America, acquired securities of CannTrust pursuant to the prospectuses;
and held some or all of such securities at the close of trading on the TSX on July 5, 2019.
On July 8, 2019, CannTrust informed the public that Health Canada found its greenhouse facility in Pelham, Ontario to be non-compliant with certain regulations. Health Canada’s audit revealed the company had been growing cannabis in unlicensed facilities from October 2018 to March 2019, and that the company had provided inaccurate information to Health Canada.
The plaintiff alleges that the defendants made misrepresentations by issuing documents, public statements, and prospectuses, which represented that CannTrust was in material compliance with all laws, regulations, licenses and permits and failing to make timely disclosure of the unlicensed cultivation.
Once this information was revealed to the public, the price of CannTrust securities dropped significantly, causing substantial damages to holders of CannTrust securities.
The plaintiff seeks $250 million in damages for negligent misrepresentation and liability for primary market misrepresentation and secondary market disclosure pursuant to Ontario’s Securities Act.
Securities holders wishing to obtain more information can visit https://www.strosbergco.com/class-actions/canntrust/. If you would like to speak to someone about this lawsuit, please contact Jay Strosberg of Strosberg Sasso Sutts LLP at firstname.lastname@example.org 1-519-561-6231.
Strosberg Sasso Sutts LLP is one of Canada's preeminent boutique litigation law firms. The firm has recovered more than $2 billion for its clients. For more information about the law firm, please visit www.strosbergco.com.