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Auxly (XLY) And FSD Pharma Project Settlement

CV-19-00617136-00CP
Case number
12 Nov 2018
Class period Start
06 Feb 2019
Class period End
28 Mar 2024
Claim deadline
  • Auxly was accused of leaving out important details about a project with FSD Pharma.
  • $XLY fell 4% and lost $40.08M of its market cap, damaging investors;
  • Auxly agreed to pay CAD $4M to investors to resolve the claims.
Auxly was accused of leaving out important details about a project with FSD Pharma to build a large cannabis cultivation space in Ontario from its Q2 2018 report.

On this news, $XLY fell 4% and lost $40.08M of its market cap, damaging investors.

Initially, Auxly was to get almost half of the cannabis from FSD's Cobourg facility, along with a 220,000-square-foot cultivation space.

A dispute arose over contract breaches related to FSD's management and staffing obligations, and infrastructure concerns. In 2019, Auxly ended its joint venture with an FSD Pharma subsidiary in Ontario.

Any investor who purchased $XLY between November 2018 and February 2019 may be eligible for a payout.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.15
Plaintiffs
Daniel Relvas
Attorneys
Berger Montague (Canada) PC
Judge
Edward Morgan
Settlement agreement date
2023-11-14
Court hearing date
14 November 2023
Objection deadline
20 October 2023
Trades matching type
FIFO
+$4,000,000
Total Settlement Amount
Created by Polina Foster, Scout

Auxly Cannabis Group Inc

Auxly Cannabis Group Inc. operates as a consumer-packaged goods company in the cannabis products market in Canada. The company focuses on developing, manufacturing, and distributing cannabis produc...

    Ticker
    XLY.TO
    ISIN
    CA05335P1099
    Sector
    Healthcare
    Industry
    Drug Manufacturers - Specialty & Generic
    Country
    Canada
    Address
    777 Richmond Street West, Toronto, ON, Canada, M6J 0C2