(October 13, 2021) The Ontario Superior Court of Justice (Justice Morgan) approved the Settlement Agreement between investors and Intellipharmaceutics International, Inc. (“IPCIF”), that will require Intellipharmaceutics to convey USD $200,000, inclusive of costs, legal fees, and taxes. Intellipharmaceutics listed its securities on the Toronto Stock Exchange and Nasdaq stock exchanges with 90% of the float trading on the Nasdaq. Intellipharmaceutics settled the U.S. and Canadian shareholder class actions consistent with the float allocation between the Canadian and U.S. stock exchanges.
The Court agreed to allocate the remaining settlement funds to the Class Action Clinic at the University of Windsor (Ontario, Canada). As the Court wrote, “the Windsor Clinic provides research support for class actions, works on law reform initiatives in the field, and serves a valuable educational role for law students. It is a worthy cause and an appropriate recipient of a cy-près award.”
The decision also reflects that we will align our interests with that of investors whenever they have been misled or how small the investment. At the time of settlement negotiation, Intellipharmaceutics had a market capitalization of approximately C$2 million, and today has a market capitalization of C$4.5 million.
We are one of the leading law firms across Canada that represent investors that purchase securities of Canadian companies on domestic and foreign stock exchanges. Maintaining the integrity of the Canadian capital markets includes the ability of investors to seek redress from corporate insiders that make misleading statements to encourage investors to: (a) hold shares previously purchased; and (b) purchase shares.
We were previously successful representing clients confirming that civil liability and damages arising from the Canadian provincial Securities Act applies to companies’ securities listed on foreign stock exchanges (e.g., an anti-Morrison v. National Australian Bank regime) in Kaynes v. BP plc, 2013 ONSC 5802, affirmed by 2014 ONCA 580, at paragraph 32; and Pannicia v. MDC Partners Inc., 2017 ONSC 7298.