CannTrust Holdings obtains CCAA protection from creditors

The Ontario Superior Court of Justice has awarded carriage to a proposed securities class action lawsuit against CannTrust Holdings Inc., Monday morning.

The consortium of Ontario-based law firms, comprised of Henein Hutchison LLP, Kalloghlian Professional Corporation, A. Dimitri Lascaris Law Professional Corporation and Strosberg Sasso Sutts, LLP, have brought the action on behalf of all investors who acquired CannTrust‘s securities on the TSX from Oct 1, 2018, to Sept 17, 2019, as well as the investors who acquired CannTrust’s securities in the May 2019 prospectus offering.

The action arises out of CannTrust’s alleged failure to disclose material information regarding, among other things, the non-compliance of its cannabis-growing facilities with applicable laws and regulations, which led to the well-touted CannTrust investigation which soured the stock market and made nationwide headlines for weeks.

“We look forward to bringing this case before the courts at the earliest opportunity so that the rights of the class members can be addressed in a fair and timely way.”

– Marie Henein, one of the lawyers representing the class

“Cases like this show the power of class actions to bring access to justice to individuals who place their savings at risk in the stock markets,” said Dimitri Lascaris, a member of the team representing the class of investors.

The current Defendants include certain current and former officers and directors of CannTrust, as well as CannTrust’s auditor, KPMG, and the underwriters of CannTrust’s May 2019 offering, Merrill Lynch Canada Inc., Citigroup Global Markets Canada Inc., Credit Suisse Securities (Canada) Inc., RBC Dominion Securities Inc., Jefferies Securities, Inc., and Canaccord Genuity Corp.

Members of the proposed class are encouraged to consult that website for updates regarding the progress of the litigation, at CannTrust Class Action.