Aphria Inc. Class Action
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.
London, ON N6A 4K3
FOR FURTHER INFORMATION ABOUT THIS CLASS ACTION, INCLUDING THE OPT-OUT PROCESS, PLEASE CLICK ON THE FOLLOWING DOCUMENTS.
- Aphria Shareholder Class Action Long-Form Notice (English)
- Aphria Shareholder Class Action Short-Form Notice (English)
- Aphria Shareholder Class Action Long-Form Notice (French)
- Aphria Shareholder Class Action Short-Form Notice (French)
- Press Release – August 26, 2022 (English)
- Press Release – August 26, 2022 (French)
- Amended Fresh as Amended Statement of Claim – September 6, 2022
- Leave and Certification Order – August 6, 2021
- Certification Order – September 6, 2022
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 LLP as follows:
Update: On June 19, 2019, the Ontario Superior Court of Justice granted carriage of the Aphria class action to Rochon Genova LLP. The decision can be found at: Rogers v. Aphria Inc., 2019 ONSC 3698.
Rochon Genova LLP continues to represent the proposed class of Aphria shareholders in this litigation.
February 8, 2019: Rochon Genova LLP 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.