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Post says OSC ponders taking action in Canntrust case

2019-07-16 06:54 ET - In the News

The Financial Post reports in its Tuesday edition that the Ontario Securities Commission's enforcement division is reviewing a complaint filed against Canntrust Holdings. The Post's Victor Ferreira writes that the complaint, filed last week in response to Health Canada's finding that the company was growing cannabis in five unlicensed rooms, questions whether Canntrust placed investors at risk of harm by not disclosing that it was breaching regulations -- in this case, putting up fake walls at a marijuana greenhouse in Pelham, Ont. "The question arose as to whether or not what was reported ... was a criminal offence such as fraud," said the complainant, who also expressed concern that the OSC might not pro-actively look into the matter. The OSC said it does not comment on "any complaint, review or investigation." Canntrust is being targeted by law firms in both the United States and Canada. Thirteen of the 14 lawsuits that the Post is aware of were made by U.S.-based law firms. The sole class action lawsuit in Canada was launched by Strosberg Sasso Sutts LLP of Windsor, Ont., seeking $250-million. A trial can only begin if a judge certifies a case and selects a firm to act on behalf of investors.

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