iAnthus (IAN) CAD $500k Shareholder Settlement

CV-20-00644524

Case number

14 May 2018

Class period Start

05 Apr 2020

Class period End

iAnthus Capital Holdings (IAN)  to settle CAD $500k with investors to end claims related to misleading about its ability to pay its interest obligations under various debenture agreements.

They are also paying a $2.9M settlement to US investors for the same case.

Outline

Back in 2018, iAnthus borrowed $50M and an additional $20M from Gotham Green Partners. In March 2019, iAnthus also secured a $25M loan from Oasis. In April 2020, iAnthus announced their inability to pay their loans. Following this disclosure, $ITHUF significantly fell, and iAnthus faced a lawsuit from investors.

Timeline
April 6, 2020: iAnthus announced they couldn’t make a $4.4M interest payment. 
This led to a 62% drop in $ITHUF the same day.
April 20, 2020: Investors filed a lawsuit against iAnthus, accusing the company of misleading them about their finances and the special account meant for interest payments.
Background

In May 2018, iAnthus Capital Holdings secured a $50M investment from Gotham Green Partners and set aside $5.72M in a special account for interest payments.

Then, iAnthus borrowed another $20M from GGP in 2019 and also got a $25M loan from Oasis Investments.

However, on February 27, 2020, iAnthus sued Oasis Investments, claiming Oasis was making false accusations about iAnthus' capacity to meet the deadline payments.

In response, on March 16, 2020, Oasis Investments sued iAnthus back, accusing iAnthus that it "provided misleading information regarding the financial health and the ability to meet interest payment obligations".

On April 6, 2020, iAnthus announced it couldn't make a $4.4M interest payment, citing poor market conditions and the impact of COVID-19. 

This announcement led to $ITHUF dropping by 62% in a single day.

Following this, on April 20, 2020, investors filed a lawsuit against iAnthus. They accused the company of misleading them about their financial situation and prospects.

What can investors expect now?

iAnthus Capital Holdings (ITHUF) agreed to settle with investors to end claims related to misleading about its ability to pay its interest obligations under various debenture agreements.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Status

Stipulative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Plaintiffs

Timothy Kwong

Defendants

Hadley Ford, Julius Kalcevich

Administrator

EPIQ

Court hearing date

20 February 2024

Exclusion deadline

18 February 2024

Objection deadline

31 January 2024

Trades matching type

FIFO

+$500,000

Cash Settlement Amount

Frequently Asked Questions

Who is eligible for this settlement?

Do I have to sell securities to be eligible?

How long does the payout process take?

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