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.

Case Status

Disbursement

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

Cash Settlement Amount