A lawsuit was filed on behalf of investors in Liberty Health Sciences Inc. (OTC: LHSIF) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/28/2019 -- An investor, who purchased shares of Liberty Health Sciences Inc. (OTC: LHSIF), filed a lawsuit over alleged violations of Federal Securities Laws by Liberty Health Sciences Inc..
Investors who purchased shares of Liberty Health Sciences Inc. (OTC: LHSIF) should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Toronto, Canada based Liberty Health Sciences Inc. was incorporated under the Business Corporations Act (British Columbia) on November 9, 2011, as SecureCom Mobile Inc. The Company's principal business activity is the production and distribution of medical cannabis through its wholly-owned subsidiary DFMMJ LLC (d/b/a Liberty Health Sciences Florida Ltd.)
Aphria Inc. ("Aphria"), which also produces and distributes cannabis, has had longstanding ties with Liberty, starting from the very beginning of both companies. When Aphria was founded in 2014, Victor Neufeld ("Neufeld") joined the firm as CEO and co-founder. One of Aphria's other early institutional backers included The Delavaco Group, Front St. Capital, York Plains, and Broadband Capital of NYC.
Neufeld became the Chairman of Liberty while Cole Cacciavillani, Aphria's chief agronomist and co-founder, also became one of the executives at Liberty. Liberty was heavily influenced by Aphria and individuals involved in the management of Aphria. Neufeld and the Serruya are large shareholders in both companies.
In September 2018, Aphria announced that it had sold off its stake in Liberty. On December 3, 2018, Quintessential Capital Management and Hindenburg Research issued a report entitled "Aphria: A Shell Game with a Cannabis Business on the Side," claiming that Aphria was part of a scheme involving the acquisition of shell companies at artificially inflated prices. Specifically, the report alleged: "Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets." The article detailed a thorough and on-the-ground investigation into Aphria's latest investments that revealed the poor quality and worth of the assets of those investments. For example, the article was accompanied by pictures showing that Aphria's latest investment in Jamaica was an abandoned building on dilapidated property.
The plaintiff claims that between June 28, 2018, and December 3, 2018, the Defendants made false and/or misleading statements and/or failed to disclose that Liberty, in conjunction with Aphria, was involved in a scheme whereby numerous fraudulent acquisitions and transactions were made to provide undue benefits to both companies' insiders, and that as a result, Liberty's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Liberty Health Sciences Inc. (OTC: LHSIF) have certain options and should contact the Shareholders Foundation.
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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