CANNTRUST HOLDINGS INC. CLASS ACTION
On July 16, 2021, the CannTrust Plan of Arrangement was approved by Justice Patillo of the Ontario Superior Court of Justice.
On January 29, 2021, the court granted the motion for an order appointing representative counsel in the CCAA proceeding. See court approved notice here.
CannTrust has been granted protection from its creditors pursuant to the CCAA. As a result, all legal proceedings against CannTrust are temporarily stayed.
- Strosberg Sasso Sutts LLP, Henein Hutchison LLP, Kalloghlian Myers LLP and A. Dimitri Lascaris Law Professional Corporation (collectively, “Counsel”) are counsel in a proposed class action on behalf of
- all investors who acquired CannTrust Holding Inc.’s (“CannTrust”) securities on the Toronto Stock Exchange from June 1, 2018 to September 17, 2019; and
- all investors who acquired CannTrust's securities in CannTrust’s May 2019 prospectus offering.
- The action arises out of CannTrust’s alleged failure to disclose material information regarding, among other things, the non-compliance of its cannabis-growing facilities with applicable laws and regulations.
- The Defendants include certain current and former officers and directors of CannTrust, as well as CannTrust’s auditor, KPMG, and the underwriters of CannTrust’s May 2019 offering, 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.
- The plaintiff seeks damages for negligent misrepresentation and liability for primary market misrepresentation and secondary market disclosure pursuant to the provisions of Ontario's Securities Act.
- On January 28, 2020, Justice Hainey appointed Strosberg Sasso Sutts LLP, Henein Hutchison LLP, Kalloghlian Professional Corporation and A. Dimitri Lascaris Law Professional Corporation as class counsel in the action and stayed another action that had been commenced in Ontario (see endorsement here).
- On March 31, 2020, CannTrust sought and was granted protection from its creditors pursuant to federal insolvency legislation, the Companies’ Creditors Arrangement Act (CCAA). The orders granted in the CCAA proceeding provide for a temporary stay of legal proceedings against CannTrust. For more information and to review the documents in the CCAA proceeding, please visit the court-appointed Monitor’s website at http://www.ey.com/ca/canntrust/
- Counsel has appeared in the CCAA proceeding and remain committed to protecting the rights of CannTrust’s shareholders in both the CCAA proceedings and the proposed class action.
- On January 20, 2021, CannTrust announced a Restructuring Support Agreement with Key Class Action Plaintiffs and their Counsel. See press release here.
- On January 29, 2021, the court granted the motion for an order appointing representative counsel in the CCAA proceeding. A copy of the representation order is available here. The court approved notice of the order is available here.
- On July 16, 2021, the CannTrust Plan of Arrangement ('Plan') was approved by Justice Patillo of the Ontario Superior Court of Justice. The Plan permits the representative plaintiffs to proceed with settlements of the class actions against certain defendants and their insurers of approximately CAD $125 million. These settlements are still subject to approval of the courts in the United States and certain other preconditions. This page will be updated to advise of the hearing dates once they are set.
- If you acquired CannTrust securities during the period from June 1, 2018 and September 17, 2019, please enter the information requested on the questionnaire page.
- If you have any questions, please call Strosberg Sasso Sutts LLP at 519.561.6296.
- If you would like to know more about how a class action works, click here.