TORONTO--(BUSINESS WIRE)--Law firm Morganti & Co, P.C., today announces that the Ontario Superior Court of Justice (the “Court”) has scheduled a hearing to be held on February 4, 2021 at 10:00 a.m. at the courthouse located at 130 Queen Street West in Toronto, Ontario (the “Settlement Approval Hearing”) to approve a settlement among all of the parties to the class proceeding styled as Anne Miller v. FSD Pharma, Inc., bearing Court File No. CV-19-614981-00CP (the “Action”).
Background
The Action was commenced on behalf of persons and entities who purchased or otherwise acquired FSD Pharma, Inc. class B common shares in the secondary market, on or after September 20, 2018, and held some or all of those securities until on or after the close of trading on February 7, 2019. In the Action it is alleged that during the Class Period, the Defendant made misrepresentations concerning material facts regarding the status of its project with Auxly Cannabis Corp. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario.
At the conclusion of full-day mediation in September 2020, the parties agreed to settle the Action to fully, definitively and permanently resolve all claims asserted against FSD, subject to approval of a written Settlement Agreement by the Court at the Settlement Approval Hearing.
The Settlement
The terms of settlement (“Settlement”) include the Defendant’s consent to certification of the Action for settlement purposes only, payment of the amount of $5.5 million CAD on behalf of the Defendant (FSD and its insurers), a full and final release of all claims that were asserted or could have been asserted against the Defendant by class members in the Action, and the Defendant’s express denial of any liability in respect of the claims alleged in the Action and of any kind whatsoever. The Settlement Agreement may be viewed at https://morgantico.com/fsd-pharma-inc/, www.fsdsecuritiesclassaction.com.
If the Settlement is approved at the Settlement Approval Hearing, a further notice will be published which will include instructions on how Class Members can file Claim Forms to participate in the pro rata distribution of the net settlement funds and the deadline for doing so.
The Class
If you acquired class B common shares of FSD Pharma, Inc. on or after September 20, 2018, and held some or all of those shares until at least February 7, 2019, you will likely be entitled to participate in the settlement after the Court has approved it.
Objections
At the Settlement Approval Hearing, the Court will consider any objections to the proposed Settlement by the Class Members if the objections are submitted in writing in the manner described in the Notice of Certification and Proposed Settlement of the FSD Pharma, Inc. Securities Class Action located at www.fsdsecuritiesclassaction.com.
Opting-Out
Class Members who wish to pursue their own action or who do not want to be bound by the outcome of this Action MUST OPT-OUT of the Action.
If you want to opt-out of the Action, you must send an OPT-OUT FORM stating that you elect to opt-out of the Class in the FSD Pharma, Inc. Class Action.
The Opt-Out Form is available at www.fsdsecuritiesclassaction.com and must be received by the Administrator on or before January 22, 2021 at 5:00pm EST.
If the Settlement is approved by the Court, each Class Member who does not opt-out of the Action will be bound by the terms of the Settlement, including a release of all claims against the Defendant, and will not be allowed to pursue an independent action.
Attending the Settlement Approval Hearing
Class Members may attend the Settlement Approval Hearing whether or not they deliver an objection. The Court may permit Class Members to participate in the Settlement Approval Hearing whether or not they deliver an objection. Class Members who wish for a lawyer to speak on their behalf at the Approval Hearing may retain one to do so at their own expense.
Questions
Morganti & Co., P.C. is a law firm that investigates, litigates and resolves economic and financial disputes. You may learn more about Morganti & Co., P.C., at www.morgantico.com.