TORONTO--(BUSINESS WIRE)--Morganti & Co., P.C., a cross border shareholder’s rights law firm, confirms that it has commenced a shareholder class action lawsuit against FSD Pharma Inc. (TSX: “HUGE").
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 (TSX: “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%.
Morganti & Co., P.C. has uncovered information that evidences that FSD Pharma and Auxly never had all the proper zoning permits to complete the phase one build-out prior to year end 2018. We have filed this evidence with the court. The next court hearing is scheduled for May 5, 2020.
The shareholders that received marketing materials from Wayland and its underwriters that sold the shares are encouraged to contact the Firm to discuss what those materials disclosed.
About Morganti & Co.
The Firm also represents investors in litigation against Aphria Inc. (TSX: “APHA”), Auxly Cannabis Group Inc. (TSX: “XLY”), HEXO Corp. (TSX: “HEXO”), Namaste Technologies Inc. (TSXV: “N”), and Wayland Group Corp. (TSX: “WAYL”).
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