Updates
February 14, 2025: The Applicant is expanding this proposed class action, and adding further defendants, including entities associated with Cannacord Genuity. The Applicant alleges that the defendants engaged in wilful misconduct contrary to the expectations of the investing public in the conduct of the SPAC merger transaction that was carried out in 2021, and subsequently, and misrepresented Taiga Motors’ capability to achieve mass commercial production of its products. The SPAC transaction valued Taiga Motors at $300 million. In early 2023, the defendants represented that Taiga Motors was capable to achieve mass production and delivery of its vehicle in the range of up to 3,500 units. On April 2, 2024, Taiga Motors disclosed that it was not able to achieve mass commercial production of its products on a sustainable basis or anywhere close to the production levels it had represented to the investors. In July 2024, Taiga Motors sought protection under the insolvency legislation of Canada. During that process, Taiga Motors’ business was sold for approximately $1 million.
Summary
KND Complex Litigation and the Montreal-based law firm of Lex Group are Counsel to an Ad Hoc Committee of Shareholders of Taiga Motors Corporation in connection with the company’s proceedings under the Companies’ Creditors Arrangement Act, RSC 1985, c C-36 (“CCAA”). The Ad Hoc Committee of Shareholders seeks to represent the claims of all persons who invested in the securities of Taiga Motors between March 30, 2023 and April 2, 2024 and incurred losses or damages on their investments. In connection with this matter, the Ad Hoc Committee of Shareholders has also commenced a class action in the Superior Court of the Province of Quebec.
On April 2, 2024, Taiga Motors announced that it was suspending its production and laying off a significant portion of its workforce. In connection with these announcements, the company furthermore revealed that it had been unable to meet its production targets for fiscal year 2023, and that it would cease providing information regarding its outlook going forward.
On July 10, 2024, Taiga Motors reported that it had commenced an insolvency proceeding under the CCAA.
On November 16, 2024, an article published in La Presse, titled “Victime de la « vallée de la mort »,” revealed that the company had wilfully misrepresented its production capabilities, and suffered from a multitude of operational and manufacturing problems that prevented it from achieving a consistent production rate and resulted in manufacturing defects in the company’s products.
The Ad Hoc Committee of Shareholders is actively engaged with the Court-Appointed Monitor of Taiga Motor in its proceedings under the CCAA. Information regarding these proceedings is available here: https://www.insolvencies.deloitte.ca/en-ca/Pages/Taiga-Motors.aspx.
Class Membership Criteria
This claim has been brought and it is being pursued on behalf of a proposed class of investors defined as follows:
all persons who acquired securities of Taiga Motors at any time during the period from April 23, 2021 through to and including April 2, 2024, and incurred a loss on their investment, except the Excluded Persons;
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