CannTrust Could Lose Its Pot License Amid a Deepening Sell-Off
- Thread starter gb123
- Start date
TheRealDman
Well-Known Member
It’ll never happen! They’ll be restricted for grows/sales for a period of time, and/or fined...but they won’t lose their license. Follow the money right back to the political hacks who are investors.
The enforcement team of the Ontario Securities Commission is reviewing a complaint filed against CannTrust Holdings Inc., the Financial Post has learned.
The complaint, filed last week in response to Health Canada’s finding that the company was growing cannabis in five unlicensed rooms, questions whether CannTrust placed investors at risk of harm by not disclosing that it was breaching regulations.
Speaking to the Post, the complainant, who asked to remain anonymous, said they decided to contact the OSC after reading a media report about a former CannTrust employee who told Health Canada that he was asked to put up fake walls at a greenhouse in Pelham, Ont., that covered thousands of cannabis plants to stage photos for the regulator.
“The question arose as to whether or not what was reported … was a criminal offence such as fraud,” said the complainant, who also expressed concern that the OSC might not proactively look into the matter.
The OSC’s lead inquiries officer responded to the complainant in an email that said the information they provided had been forwarded to the enforcement branch of the OSC for further review.
When asked if a complaint was filed or an investigation against CannTrust was underway, the OSC said it could not “confirm or comment on the existence, status or nature of any complaint, review or investigation.”
CannTrust is still reeling from Health Canada’s findings early last week, which resulted in a hold being placed on 5,200 kilograms of product. By the end of the week, the company’s stock price had dropped by nearly 50 per cent as it announced that it was halting all product sales and shipments.
The company’s troubles, however, don’t appear to be ending there.
Between Thursday and Friday, at least 14 law firms launched class-action lawsuits against CannTrust, alleging the company breached securities laws by releasing misleading statements while it was operating in unlicensed rooms.
CannTrust did not immediately reply to a request for comment on the OSC complaint or the class-action lawsuits.
Because CannTrust’s stock is dual listed on the Toronto Stock Exchange and the New York Stock Exchange, the company is being targeted by law firms in both the U.S. and Canada. Thirteen of the 14 lawsuits that the Post is aware of were made by law firms south of the border. The sole class action lawsuit in Canada was launched by Windsor, Ont.-based Strosberg Sasso Sutts LLP, seeking $250 million.
The lawsuit, which also names CEO Peter Aceto and each member of CannTrust’s board of directors as individual defendants, alleges CannTrust breached section 130 of the Ontario Securities Act which outlines liability for misrepresentation in offerings.
“The Securities Act requires material information to be disclosed to the public and it requires that information given to the public be accurate or truthful,” said David Wingfield, the lawyer co-leading the case for Strosberg Sasso Sutts. “In this case, it was not.”
According to the lawsuit, the plaintiff is a medical insurance professional from Mississauga, Ont. who bought CannTrust shares between Oct. 1 — around the time, according to Health Canada, that the company started growing cannabis in the unlicensed rooms — and July 5 — the last trading day before Health Canada’s findings were revealed.
Class action lawsuits only require one plaintiff to serve as the lead and represent the entire pool of investors who believe they were wronged by a company, Wingfield said. The firm, however, is still looking for additional investors to come forward.
The next steps involve building out the case, Wingfield said, by speaking to other investors and filing a formal statement of claim. A trial could only commence if a judge certifies a case and selects a firm to act on behalf of investors.
CannTrust’s stock closed Friday at $3.34. It was trading up almost 12 per cent at $3.73 Monday morning.
The complaint, filed last week in response to Health Canada’s finding that the company was growing cannabis in five unlicensed rooms, questions whether CannTrust placed investors at risk of harm by not disclosing that it was breaching regulations.
Speaking to the Post, the complainant, who asked to remain anonymous, said they decided to contact the OSC after reading a media report about a former CannTrust employee who told Health Canada that he was asked to put up fake walls at a greenhouse in Pelham, Ont., that covered thousands of cannabis plants to stage photos for the regulator.
“The question arose as to whether or not what was reported … was a criminal offence such as fraud,” said the complainant, who also expressed concern that the OSC might not proactively look into the matter.
The OSC’s lead inquiries officer responded to the complainant in an email that said the information they provided had been forwarded to the enforcement branch of the OSC for further review.
When asked if a complaint was filed or an investigation against CannTrust was underway, the OSC said it could not “confirm or comment on the existence, status or nature of any complaint, review or investigation.”
CannTrust is still reeling from Health Canada’s findings early last week, which resulted in a hold being placed on 5,200 kilograms of product. By the end of the week, the company’s stock price had dropped by nearly 50 per cent as it announced that it was halting all product sales and shipments.
The company’s troubles, however, don’t appear to be ending there.
Between Thursday and Friday, at least 14 law firms launched class-action lawsuits against CannTrust, alleging the company breached securities laws by releasing misleading statements while it was operating in unlicensed rooms.
CannTrust did not immediately reply to a request for comment on the OSC complaint or the class-action lawsuits.
Because CannTrust’s stock is dual listed on the Toronto Stock Exchange and the New York Stock Exchange, the company is being targeted by law firms in both the U.S. and Canada. Thirteen of the 14 lawsuits that the Post is aware of were made by law firms south of the border. The sole class action lawsuit in Canada was launched by Windsor, Ont.-based Strosberg Sasso Sutts LLP, seeking $250 million.
The lawsuit, which also names CEO Peter Aceto and each member of CannTrust’s board of directors as individual defendants, alleges CannTrust breached section 130 of the Ontario Securities Act which outlines liability for misrepresentation in offerings.
“The Securities Act requires material information to be disclosed to the public and it requires that information given to the public be accurate or truthful,” said David Wingfield, the lawyer co-leading the case for Strosberg Sasso Sutts. “In this case, it was not.”
According to the lawsuit, the plaintiff is a medical insurance professional from Mississauga, Ont. who bought CannTrust shares between Oct. 1 — around the time, according to Health Canada, that the company started growing cannabis in the unlicensed rooms — and July 5 — the last trading day before Health Canada’s findings were revealed.
Class action lawsuits only require one plaintiff to serve as the lead and represent the entire pool of investors who believe they were wronged by a company, Wingfield said. The firm, however, is still looking for additional investors to come forward.
The next steps involve building out the case, Wingfield said, by speaking to other investors and filing a formal statement of claim. A trial could only commence if a judge certifies a case and selects a firm to act on behalf of investors.
CannTrust’s stock closed Friday at $3.34. It was trading up almost 12 per cent at $3.73 Monday morning.
CalyxCrusher
Well-Known Member
The face of the cannabis culture........You mean these fat wanna bes.....
OLD MOTHER SATIVA
Well-Known Member
"“The question arose as to whether or not what was reported … was a criminal offence such as fraud,”"
>>huh?
>>huh?
chadfly111
Well-Known Member
exactly!theres no accountability anymore,if you have money,you have a get out of jail card...its fucking pathetic
ya I just shook my head..
chadfly111
Well-Known Member
the punishment should be 5 minutes in a locked room with 5 home growers,that'd fuckin learn'em!
chadfly111
Well-Known Member
there nothing a good shit kickin cant fix
odam2k
Well-Known Member
As long as a good portion of the population still sees pot as the "reefer madness" killer narcotic that they were taught about, we're going to continue to see HEALTH CANADA in charge, after all, it IS a drug right? Of course it is, just like alcohol and nicotine... Surely Health Canada is in charge of those too right? Laughable.... People will keep lumping pot in with the real drugs, like opiates, cocaine, amphetamines, etc, until, well, I dunno, till they're dead? (Possibly helped along by alcohol or nicotine)
As I've said a few times here, I believe things will relax as we move forward and people realize the world didn't end because Canada legalized pot. In the mean time, those ultra conservative "reefer madness" believers still have enough influence to ensure the rules were created to placate them.
That, plus most of them probably have money invested in the "Cannabis Space"
As I've said a few times here, I believe things will relax as we move forward and people realize the world didn't end because Canada legalized pot. In the mean time, those ultra conservative "reefer madness" believers still have enough influence to ensure the rules were created to placate them.
That, plus most of them probably have money invested in the "Cannabis Space"
chadfly111
Well-Known Member
its just a money grab in disguiseAs long as a good portion of the population still sees pot as the "reefer madness" killer narcotic that they were taught about, we're going to continue to see HEALTH CANADA in charge, after all, it IS a drug right? Of course it is, just like alcohol and nicotine... Surely Health Canada is in charge of those too right? Laughable.... People will keep lumping pot in with the real drugs, like opiates, cocaine, amphetamines, etc, until, well, I dunno, till they're dead? (Possibly helped along by alcohol or nicotine)
As I've said a few times here, I believe things will relax as we move forward and people realize the world didn't end because Canada legalized pot. In the mean time, those ultra conservative "reefer madness" believers still have enough influence to ensure the rules were created to placate them.
That, plus most of them probably have money invested in the "Cannabis Space"
chadfly111
Well-Known Member
this is why i want to go off grid,no bills except property taxes,,,or live on a houseboat...grow my own right on the aft deck!!
i am seriously wanting a houseboat...too bad they couldnt stay in the water year round or i would in a second
i am seriously wanting a houseboat...too bad they couldnt stay in the water year round or i would in a second
BurtMaklin
Well-Known Member
No houseboat life for this guy, just the thought of those big dock spiders sharing my space freaks me out. Pretty sure that short lived adventure would end in a boat fire.
chex1111
Well-Known Member
Lead Plaintiff Deadline is September 9, 2019" style="margin-bottom: 1em; caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: Georgia, "Times New Roman", serif; font-size: 18px;">Lead Plaintiff Deadline is September 9, 2019
Wolf Haldenstein Adler Freeman & Herz LLP[/a] announces that a federal securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of CannTrust Holdings Inc. (NYSE: CTST; TSX: TRST) ("CannTrust" or the "Company") on behalf of purchasers of the Company's securities between November 14, 2018 and July 5, 2019, inclusive (the "Class Period").
Shareholders who have incurred losses in CannTrust Holdings Inc. securities are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
., you may, no later than September 9, 2019, request that the Court appoint you lead plaintiff of the proposed class." style="margin-bottom: 1em; caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: Georgia, "Times New Roman", serif; font-size: 18px;">If you purchased shares of CannTrust Holdings Inc., you may, no later than September 9, 2019, request that the Court appoint you lead plaintiff of the proposed class.
In addition, investors who purchased shares of CannTrust Holdings Inc. shares on the Toronto Stock Exchange are encouraged to contact the firm to obtain additional information about potential actions to be filed on behalf of shareholders who purchased on this exchange." style="margin-bottom: 1em; caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: Georgia, "Times New Roman", serif; font-size: 18px;">In addition, investors who purchased shares of CannTrust Holdings Inc. shares on the Toronto Stock Exchange are encouraged to contact the firm to obtain additional information about potential actions to be filed on behalf of shareholders who purchased on this exchange.
The filed complaint alleges that CannTrust issued a series of false and misleading statements to investors during the Class Period, and failed to disclose:
- that the Company was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending;
- that the Company's Pelham greenhouse did not comply with certain regulations;
- that, as a result, the Company was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; and
- that, as a result, the Company's customers would face shortages and would likely seek product from CannTrust's competitors.
" style="margin-bottom: 1em; caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: Georgia, "Times New Roman", serif; font-size: 18px;">Following this news, shares of the Company's stock fell US$1.11 per share, or over 22% in value, to close on July 8, 2019 at US$3.83 per share.
Wolf Haldenstein[/a] has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
Wolf Haldenstein Adler Freeman & Herz LLP[/a] by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
Attorney Advertising. Prior results do not guarantee or predict a similar outcome.
