Settlement of Action
This class proceeding has now been settled and the settlement has been approved by the Supreme Court of British Columbia. A copy of the order approving the settlement is available here.
TO SUBMIT A CLAIM FOR YOUR PORTION OF THE SETTLEMENT FUNDS, FILL OUT THE ONLINE CLAIMS FORM AVAILABLE HERE.
Claim forms must be received no later than 11:59pm PT on July 7, 2023 to be valid.
Details about the claims process as well as instructions on how to fill out the Claims Form can be found here.
Please note, shareholders who purchased their shares of Braxia on the OTC Market must provide documentation showing: (1) that they are Canadian residents; and (2) that they opted out of the parallel U.S. class action, in order to be eligible for compensation under this settlement.
A copy of the Settlement Agreement is available here.
More information about the terms of the settlement are available here.
The Court-approved plan to allocate and distribute the settlement amount is available here.
If you have any questions about the settlement or the process to submit a claim, please email your questions to [email protected] or fax them to (416) 352-7638.
Summary
This is a proposed securities class action against Braxia Scientific Corp. (“Braxia”), certain of its current and former directors, officers and related parties, and the underwriters for Braxia’s private placement conducted in June of 2020. This class action arises out of misrepresentations and failures to make timely disclosure made in Braxia’s disclosure documents regarding the true financial status of Braxia, the true value (or lack thereof) of the Company’s four Spring 2020 acquisitions, and the fact that a shareholder and undisclosed related party was a part owner of all four acquired companies and made a sizeable profit from Braxia acquiring those companies at unreasonably expensive valuations.
Specifically, this lawsuit alleges that the Defendants: (1) misrepresented the value of four companies that were acquired by Braxia in March and April of 2020; (2) significantly overpaid for all four acquired companies; (3) did not disclose that a shareholder and relative of the then-CEO who exerted significant influence over Braxia was also a part owner of all four acquired companies and was being overcompensated millions of dollars’ worth of shares in connection with Braxia’s acquisitions at unreasonably high valuations; and (4) misrepresented the value of Braxia’s assets, liabilities, net loss and other financial metrics in Braxia’s Class Period financial statements. When the truth was revealed, the Company was forced to restate its Class Period financial statements to correct the alleged misrepresentations.
Class Membership Criteria
This class action is brought on behalf of:
- All persons and entities (other than certain excluded persons), who during the period of time from May 12, 2020 to March 11, 2021 inclusive, acquired Braxia’s securities in the secondary market and who held some or all of those securities until at least February 17, 2021, and who are residents of Canada or were residents of Canada at the time of such acquisitions, regardless of the location of the exchange on which they acquired Braxia’s securities; or acquired Braxia’s securities in the secondary market in Canada or another exchange located outside of the United States, regardless of where they reside or are domiciled.
As well as:
- All persons and entities (other than certain excluded persons), wherever they may reside or be domiciled, who acquired securities of Braxia pursuant to the private placement which closed on June 11, 2020, and who held some or all of those shares until at least February 17, 2021.
Register
For the shares purchased during the identified "class period", those shares are automatically considered to be included within the proceeding. For shares purchased outside of the identified "class period", those are not automatically included and you may be required to retain your own lawyer.
We welcome you to complete the below form so you can receive future updates about the proceeding. If you invested more than $50,000, in the particular investment, please complete the form and we will contact you within the near future.