The Ontario Court has approved the settlement agreement relating to the Auxly Cannabis Group Inc. class action
November 20, 2023 By Grow Opportunity Staff
(CNW) Toronto — Berger Montague (Canada) PC announces that the Ontario Superior Court of Justice has approved the class action settlement regarding Daniel Relvas v. Auxly Cannabis Group Inc. CV-19-00617136-00CP.
A class action brought on behalf of class members has been settled. The settlement has been approved by the Ontario Superior Court of Justice. This notice provides class members with information about how to submit a claim form to the administrator in order to participate in the distribution of the net settlement amount.
This shareholder class action was commenced on behalf of investors who purchased Auxly common shares in the secondary market during the class period, against Auxly in the Ontario Superior Court: Daniel Relvas v. Auxly Cannabis Group Inc. CV-19-00617136-00CP.
The plaintiff in the action alleges that the defendant made misrepresentations during the class period related to Auxly’s business, operations and finances by omitting from its Q2 2018 management discussion and analysis, material facts regarding the status of its project with FSD Pharma Inc. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario. The defendant denies all such allegations.
The settlement of the action, without an admission of liability on the part of the defendant, was approved by The Honourable Justice Edward Morgan on November 14, 2023. This notice provides a summary of the settlement.
Auxly’s insurers will pay CAD $4 million, in full and final settlement of all claims against Auxly in the Action. Class counsel fees, including out-of-pocket expenses and taxes, were fixed by the court as a first charge on the settlement amount in the amount of 30 per cent of CAD $4 million, plus disbursements, plus taxes. The settlement for the class, less the class counsel fees and disbursements, administrator’s expenses, and taxes, will be distributed to the class in accordance with the court-approved plan of allocation.
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