CannTrust Securities Settlements

If you purchased the publicly traded common stock of CannTrust Holdings Inc. (“CannTrust”) in the secondary market or pursuant or traceable to CannTrust’s May 6, 2019 secondary offering, you may be entitled to a payment from several settlements.

Overview

After extensive negotiations under the auspices of a court-appointed mediator, CannTrust and the majority of defendants in class actions pending in the United States and Canada (“Actions”) have reached a global resolution of the claims asserted against them.

The proposed Settlements will be implemented pursuant to an amended and restated plan of compromise, arrangement and reorganization of CannTrust, CannTrust Inc. and Elmcliffe Investments Inc. (as may be further amended from time to time in accordance with its terms), pursuant to Canada’s Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended, (the “CCAA Plan”), which was approved by the Ontario Superior Court of Justice (Commercial List) (the “Canadian Court”) by a “sanction order” entered on July 16, 2021 (the “CCAA Sanction Order”).

The Settlements obtained preliminary approval from the U.S. Court on September 2, 2021. The U.S. Court will hold a hearing on December 2, 2021 to determine whether to finally approve the Settlements in relation to the U.S. Class Action.

Who is eligible for compensation from the Settlements?

Pursuant to orders in the Actions, the following may be entitled to a recovery from the settlement proceeds:

All persons, wherever they reside or be domiciled, that purchased or otherwise acquired common shares of CannTrust during the period from June 1, 2018 through September 17, 2019, inclusive, except for Excluded Persons.

Click here for the list of Excluded Persons.

You must submit a Claim Form by March 16, 2022 in order to be eligible for a payment.

Important Information for U.S. Settlement Class Members

The U.S. Court directed, for the purposes of the proposed Settlements in relation to the U.S. Class Action, that everyone who fits the following description is a member of the U.S. Settlement Class (a.k.a. a U.S. Securities Claimant) and subject to the Settlements, unless they are an Excluded Person or take steps to exclude themselves from the U.S. Settlement Class:

(i) all persons and entities who or which purchased the publicly traded common stock of CannTrust Holdings Inc. on the New York Stock Exchange (NYSE) or on any U.S. based trading platform during the period from June 1, 2018 through March 31, 2020, inclusive; and/or

(ii) all persons and entities who or which purchased or otherwise acquired CannTrust Holdings Inc. common stock pursuant or traceable to the Offering Materials (as defined in the Complaint) issued in connection with the secondary public offering, completed on or about May 6, 2019.

If you are not a member of the U.S. Settlement Class (U.S. Securities Claimant), you may be a “Canadian and Non-U.S. Securities Claimant,” which means all Securities Claimants other than U.S. Securities Claimants. Canadian and Non-U.S. Securities Claimants are also entitled to submit Claim Forms to participate in the Settlements. Residency does not determine whether you are a U.S. Securities Claimant or a Canadian and Non-U.S. Securities Claimant.

Click here for the list of Excluded Persons.

Important Deadlines

For all Securities Claimants:

Submit a Claim

The only way to receive compensation from the Settlements is to submit a Claim Form.

Claim Forms must be submitted to the Claims Administrator no later than March 16, 2022.

You may submit a claim online here. It’s fast, easy and secure.

You can alternatively submit a claim by email, fax or mail. Click here to download the Claim Form.

For U.S. Settlement Class Members (a.k.a U.S. Securities Claimants):

Exclude Yourself
(Opt Out)

The deadline for members of the U.S. Settlement Class to exclude themselves from the U.S. Settlement Class is November 11, 2021. Click here for more information.

Object to the Settlements

The deadline for members of the U.S. Settlement Class to object to the Settlements is November 11, 2021. Click here for more information.

Do Nothing

If you are a member of the U.S. Settlement Class and do nothing, you will:

  • Get no payment from the Settlements;
  • Give up rights in relation to the U.S. Settlement Class; and
  • Still be bound by the terms of the Settlements, as they relate to the U.S. Settlement Class.

Click here for the Notice to U.S. Settlement Class Members.

We recommend you take a few minutes to view the FAQ section for further details about the Settlements to fully understand your rights.