1-866-881-2292
Schedule A Free Consultation   416-548-9874 | 1-866-881-2292

121 Richmond Street West | Suite 900 | Toronto, ON

Aphria

Aphria Inc. Class Action

Update – March 31, 2025

Aphria $30 million Settlement Approved by the Court

We are pleased to report that on March 27, 2025, Justice Morgan approved the $30 million settlement in the Aphria securities class action.

The Administration of the Settlement will commence 30 days after the date of the Order or on April 26, 2025, at which time the Notice of Settlement Approval will be published by RicePoint, the Court approved Settlement Administrator, along with further instructions as to how to submit a claim.

A copy of His Honour’s Endorsement and Order approving the settlement, along with the Long-Form Notices of Settlement Approval can be found here:

Settlement Endorsement
Settlement Approval Order
Long-Form Notice of Settlement Approval (English)
Long-Form Notice of Settlement Approval (French)

 

Update – March 25, 2025

If you would like to attend the Settlement Approval Hearing virtually on March 26, 2025 at 11:30 AM, please click on the following link:

https://ca01web.zoom.us/j/62771600966?pwd=di1M2FRSbxkQVUQzaIBkCMYUybPVp5.1
Meeting ID: 627 7160 0966   –   Passcode: 551661

 

Update – February 7, 2025

Aphria Global Class Action Settlement in the amount of CAD$30 million – subject to Court approval

A Settlement has been reached in the global class action (the “Class Action”) against Aphria and certain of its former officers and directors (“Individual Defendants”). The Settlement requires Court approval at an upcoming hearing.

The Class Action alleges that, between January 29, 2018 and December 3, 2018, Aphria and the Individual Defendants made public misrepresentations to the capital markets, including in an Aphria Prospectus Offering in June 2018, in connection with two significant international business acquisitions made by Aphria during 2018, namely: (i) Aphria’s acquisition of a company called Nuuvera Inc. which was publicly announced on January 29, 2018; and (ii) Aphria’s acquisition of a company called LATAM Holdings Inc. which was publicly announced on July 17, 2018. The Class Action alleges that the substantial drop in Aphria’s share price following certain public disclosures about Aphria’s business on March 22 and on December 3, 2018, amounted to a public correction of misrepresentations about Aphria’s business.

Aphria and the Individual Defendants deny all allegations pleaded against them in the Class Action.

The Settlement, if approved by the Court, provides for the payment by the Defendants of the total amount of CAD $30,000,000 to resolve the Class Action. The Settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by Aphria or the Individual Defendants.

The Settlement will be considered for approval by the Ontario Superior Court of Justice at a Settlement Approval Hearing which has been set for March 26, 2025 in Toronto at 11:30 am. At the Hearing, the Court will also address a motion to approve Class Counsel’s fees, which will not exceed 30% of the settlement amount plus reimbursement for expenses incurred in the Class Action.

Persons who purchased Aphria shares on or after January 29, 2018 and held them on March 23 and/or December 3, 2018 (“Class Members”) may object to or support the Settlement, by making a submission in writing prior to March 14, 2025. Class Members may also attend the Settlement Approval Hearing in person or remotely via Zoom. For more information about your rights and how to speak to the Settlement, please see the Long-Form Notice available online at www.AphriaSettlement.com or call toll-free: 1-888-700-9930.

To review various documents relevant to this litigation, please click on the following links:

Settlement Agreement
Settlement Rationale
Sample Calculation
Short Form Notice of Settlement Approval Hearing – English
Short Form Notice of Settlement Approval Hearing – French
Long Form Notice of Settlement Approval Hearing – English
Long Form Notice of Settlement Approval Hearing – French
Notice of Motion
Affidavit of Vincent Genova
Supplementary Affidavit of Vincent Genova
Affidavit of Ed Longo
Affidavit of Frank C Torchio
Affidavit of Alexandra Draghiciu
Amended Distribution Protocol
Short Form Notice of Settlement Approval
Long Form Notice of Settlement Approval
Claim Form
Settlement Approval and Fee Approval Factum of the Plaintiffs


Update – September 11, 2024

Documentary and oral discoveries have been completed.  This process involved a review of hundreds of thousands of pages of relevant documents and several weeks of oral examinations for discovery.

The matter was set down for trial, and Mr. Justice Morgan has been appointed the trial judge.

The Plaintiffs’ expert reports were served on Aphria counsel, and the trial of this action is scheduled for 4 to 6 weeks commencing on January 13, 2025

Update: August 26, 2022 – Leave And Certification Granted

The Ontario Superior Court of Justice has granted leave pursuant to the Ontario Securities Act and has certified a global securities class action which permits a defined group of investors (the “Class“) to pursue claims against Aphria Inc. and certain of its Officers and Directors (“Aphria Defendants“). It is alleged that the Aphria Defendants made material misrepresentations to the market about two significant international transactions during 2018 and that public disclosure about these acquisitions on December 3 and 4, 2018 caused the price of Aphria’s common shares to fall substantially, resulting in investor losses.

The certified class action is Vecchio Longo Consulting Services Inc. v. Aphria Inc. et al. Ontario Superior Court of Justice Court File No. CV-19-0061408600 CP (the “Class Action“). It claims monetary damages on behalf of the Class.

The allegations made in the Class Action have not been proven and are disputed by the Aphria Defendants.

NOTE: Claims in this Action against Carl Merton were dismissed, on consent, without costs by Court Order on August 6, 2021 and claims against Clarus Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., Haywood Securities Inc. and Infor Financial Inc. were dismissed, on consent, without costs, by Court Order on August 18, 2022.

Who Is A Class Member?

The Action has been certified on behalf of all persons or entities, wherever they may reside, who acquired Aphria common shares during the period of time after 07:00 ET January 29, 2018 until 08:25 ET December 3, 2018 (“Class Members“).

This includes those individuals who acquired Aphria shares in the secondary market (that is, in usual course on the open market via a stock exchange like the TSX or the NYSE or an over the counter exchange), as well as those who acquired their shares by way of Aphria’s Prospectus Offering in June 2018.

If you are an eligible Class Member and the Class Action is successful you may be entitled to share in any monetary award or settlement.

If You Wish To Participate In The Class Action, Do Nothing.

As a Class Member, you will not be required to pay any costs in the event that the Class Action is unsuccessful. If the Class Action is successful at trial or if a settlement is reached, you may be entitled to share in any award or settlement. A notice would be provided to the Class providing details concerning the terms of the settlement or award and how eligible Class Members might make a claim for compensation.

Class Members Who Do Not Want To Participate In The Action Must Opt Out.

If you do not wish to participate in the Class Action, and be bound by or receive any benefits from it, you must opt out by notifying RicePoint Administration Inc. by November 24, 2022 at:

Aphria Securities Class Action
c/o RicePoint Administration Inc.
P.O. 3355
London, ON N6A 4K3

FOR FURTHER INFORMATION ABOUT THIS CLASS ACTION, INCLUDING THE OPT-OUT PROCESS, PLEASE CLICK ON THE FOLLOWING DOCUMENTS.

 

Update:

On August 6, 2021, the Ontario Superior Court of Justice granted the plaintiff in Vecchio Longo Consulting Services Inc. v. Aphria Inc. et. al. (Court file No. CV-19-00614086-00CP) (the “Action”) leave to proceed, with a global securities class action for misrepresentations pursuant to section 138.3 of the Ontario Securities Act against Aphria Inc. and its former officers and directors Victor Neufeld and Cole Cacciavillani (the “Aphria Defendants”). In the same decision, the Court certified this secondary market shareholder claim as a class proceeding (the “Secondary Market Claim”), and appointed Vecchio Longo Consulting Services Inc. as representative plaintiff.

In addition, the Court certified the misrepresentation claims in the Action pursuant to section 130 of the Ontario Securities Act (“Prospectus Claim”) as a class action against the Aphria Defendants and securities underwriters Canaccord Genuity Corp., Clarus Securities Inc., Cormark Securities Inc., Haywood Securities Inc., and Infor Financial Group Inc. (the “Underwriters”), conditional upon class counsel bringing a motion within one hundred days of the decision for the appointment of a representative plaintiff for class members that purchased Aphria shares pursuant to a $258 million prospectus offering made by Aphria that closed on June 28, 2018 (“Prospectus Purchasers”).  To facilitate the identification of Prospectus Purchasers who may serve as a representative plaintiff, the Underwriters are each ordered to deliver within thirty days of the decision an affidavit listing their respective purchasers of shares in the prospectus offering.

Subject to the conditional certification of the Prospectus Claim, the class is defined as:

“All persons other than Excluded Persons, wherever they may reside or be domiciled, who acquired Aphria common shares during the Class Period, where Excluded Persons are defined as Defendants, their past and present subsidiaries, affiliates, officers, directors, senior employees, partners, legal representatives, heirs, predecessors, successors and assigns, and any individual who is a member of the immediate family of an Individual Defendant.”

The Class Period is defined as “the period of time after 07:00 ET January 29, 2018 until 08:25 ET December 3, 2018.”

Formal Notice and Opt-Out provisions will be by further Order of the Court. A copy of the judgment can be viewed by clicking here

Further inquiries may be made to Class Counsel Rochon Genova as follows:

Douglas Worndl – [email protected]; 

 

Update: On June 19, 2019, the Ontario Superior Court of Justice granted carriage of the Aphria class action to Rochon Genova. The decision can be found at: Rogers v. Aphria Inc., 2019 ONSC 3698.

Rochon Genova continues to represent the proposed class of Aphria shareholders in this litigation.

February 8, 2019: Rochon Genova has commenced a class action in Ontario on behalf of shareholders of Aphria Inc. (TSX: APHA,NYSE: APHA) who acquired their Aphria securities between January 29, 2018 up to and including November 30, 2018. The class action seeks damages from Aphria and others arising out of alleged misrepresentations in Aphria’s required public disclosure.

http://www.newswire.ca/en/releases/archive/February2019/08/c4456.html

Practice Areas

Book A Meeting
with Rochon Genova