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.