FSD Pharma (CSE: HUGE) (NASDAQ: HUGE) this morning announced that it has settled a class action lawsuit that was filed against the firm in 2019. The class action itself was related to the build-out of its facility in Cobourg, Ontario, which in February 2019 took a turn for the worse when things fell apart with construction partner Auxly Cannabis (TSXV: XLY).
FSD this morning indicated that it has entered into a settlement agreement due to the desire to avoid the expense of court associated with forging ahead to fight the lawsuit. The company admitted no fault or liability in connection with the settlement.
Under the terms of the arrangement, the company will pay $5.5 million to settle the lawsuit, of which $4.6 million will be covered by insurance the company currently has in place. The remainder, $900,000, needs to be covered by the company directly.
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To provide further clarity to our readers, this class action was filed February 22, 2019, by a shareholder of FSD whom filed a statement of claim in the Ontario Superior Court. Among other items, the claim alleged that FSD Pharma had made statements containing misrepresentations related to the build-out of the Cobourg facility.
The lawsuit was not filed by Auxly, as certain message boards seem to have misinterpretated. Rather, within regulatory filings, FSD Pharma explicitly states that “to date, neither party has taken further legal action against the counter party,” when referencing the events that transpired with Auxly.
FSD Pharma last traded at $2.14 on the CSE.
Information for this briefing was found via Sedar, and FSD Pharma. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
10 Responses
I lost 40 k I have enter number and e-mail have not heard back from anyone ??
Ron
I too lost over 50k and when I finally found out amd wanted to join the suit, they claimed I was a few months late to join . I don’t think that’s fair and that very shareholder should have been contacted.
Is there anymore options for us to sue them?
Yeah it’s not fair. We could have used this information earlier. It’s almost 2023 and I’m holding 40 shares I paid 3500$ back in 2018
When did you reach out to them?
Have entered my name and number twice and called in regards to this class action lawsuit. Was always told I would be updated.
I have lost over 10k from this company.
416 389 0291
Stef
go to fsdsecuritiesclassaction.com all the info is there. Good Luck! would be nice to get some of our “stolen” money back.
I have owned shares in this company for some time and never was made notice of the class action suit. Please respond back. I was part of this timeline and I hope you can help.
Scottieb33@hotmail.com
Scottieb609@gmail.com
9053347422
I am just coming upon to now, was never notified of lawsuit either.
Lost thousands with this company when they split shares.
We’re investors paid back?
vivianmmcleod@icloud.com
Please reply
hi,
I have lost almost $24000, since we are in the same boat and if you find any solution, kindly let me know which I will appreciate highly.
best regards,
kabita
416 6253481