In a July 8, 2019 News Release, CannTrust announced that Health Canada had issued a non-compliance report in respect of five unlicensed rooms that the Company was using to grow cannabis at its greenhouse facility in Pelham Ontario. The News Release also stated that inaccurate information had been provided to Health Canada by employees of CannTrust.
The plaintiffs allege that CannTrust Holdings Inc., and its officers and directors are liable for misrepresentations made during the class period including but not limited to: (i) that it maintained all necessary licensing and (ii) that it was in compliance with all applicable laws and regulations.
Once the information was revealed, the price of CannTrust securities dropped significantly, on unusually high trading volumes, causing substantial damages to shareholders of the company.
The action seeks damages for negligence, negligent misrepresentation, conspiracy, breaches of the Ontario Business Corporations Act and breaches of the primary and secondary market provisions of the Ontario Securities Act.
Persons who believe that they may be members of the proposed class are encouraged to contact Harrison Pensa LLP for further information. Inquiries should be directed to Kassandra Hallett at 1-800-263-0489 ext. 608 or .