TORONTO, January 24, 2022--(BUSINESS WIRE)--KSM Securities Litigation Group is pleased to announce that on November 2, 2021, the Superior Court of Justice, Divisional Court denied Auxly Cannabis Group’s motion to appeal the decision that authorized an investor in a proposed class action styled as Gowanlock v. Auxly Cannabis Group Inc., CV-19-00617136-00CP, to proceed with a statutory cause of action pursuant to section 138.3 of the Ontario Securities Act.
The investor alleges that between November 12, 2018, and February 6, 2019, Auxly Cannabis Group Inc. (TSX: "XLY", OTCBB: "XLY", and FRA: "3KF") released statements to the market that contained misrepresentations by omitting that its cannabis production facility it enjoyed an ownership interest with FSD Pharma, Inc. (TSX: "HUGE") was materially behind schedule and that its relationship with FSD Pharma Inc. was falling apart. The investor further alleges that on February 7, 2019, Auxly Cannabis Group released a statement that corrected the alleged misrepresentation announcing that it was ceasing its relationship with FSD Pharma, Inc.
The investor must amend the statement of claim to include the statutory cause of action, certify the cause of action with common issues for all investors, proceed into discovery of Auxly Cannabis Group’s books-and-records, and, ultimately, engage in a trial.
If granted class certification status, investors’ shares purchased between November 12, 2018, and February 6, 2019, will be protected by this shareholder class action.
Please refer to our dedicated webpage for more information of this shareholder class action at www.investorcomplexlaw.com/auxly-cannabis-group-inc/
This notice is being released pursuant to section 138.14(a)(ii) of the Ontario Securities Act.
Questions about this press release should NOT be directed to the Court.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005213/en/
Kim Spencer McPhee Barristers, P.C.