The lawsuit, which contains allegations that are not proven in court, contends that the Defendants are liable for secondary market misrepresentation under British Columbia’s Securities Act because of inaccurate public representations they made on February 22, 2023 about the company’s ability to sell cocaine, which in turn artificially inflated the company’s stock value. Investors who purchased Adastra stock after the alleged public misrepresentations experienced losses when the stock value dropped significantly after Adastra public corrected its own misrepresentations on March 3, 2023. This class action seeks to hold the Defendants responsible for their alleged inaccurate and careless representations related to their ability to legally sell cocaine.
A class action is a legal case through which one person makes a claim to the Court on behalf of a similarly situated class of people who have the same or a similar legal claim. A class action seeks to hold a defendant or defendants responsible for their conduct that affects each member of the class by resolving issues that are common to the class in the same legal proceeding, instead of each class member bringing a claim individually.
The individual who first files the claim must ask the Court for permission to proceed as a class action. If permission is granted, and the case may proceed as a class action, the Court will appoint an individual as “Representative Plaintiff” to represent the best interests of the class during the litigation and define the class group. Each person who meets the criteria of the class group is considered a “Class Member”.
The proposed class action is brought on behalf of all persons and entities who otherwise acquired common shares of Adastra Holdings Ltd. between and inclusive of February 22, 2023, and March 3, 2023, and held onto those shares as of March 3, 2023.
If you purchased common shares of Adastra Holdings Ltd., Slater Vecchio LLP would like to hear from you. Please submit your information to the form on this webpage.
