John Fabello

The plaintiffs brought a motion for approval of an $8,000,000 settlement in three related securities class actions against a cannabis company and its directors, officers, and underwriters.

The claims alleged misrepresentations regarding the company's business and the build-out of its production facility.

The court approved the settlement, finding it fair, reasonable, and in the best interests of the class.

The court also approved class counsel fees of 30% of the settlement amount ($2,400,000) and honoraria of $5,000 for each of the four representative plaintiffs.

The plaintiffs in three related proposed class actions sought leave to proceed under the Securities Act, certification under the Class Proceedings Act for settlement purposes, and approval of a Notice of Settlement Approval Hearing.

The actions alleged misrepresentations by a cannabis company regarding its facility expansion.

The court found the certification criteria were met for settlement purposes, granted leave to proceed under the Securities Act, and approved the form and dissemination plan for the settlement notice.