Liberty Health Sciences Inc. (OTC: LHSIF) Investor Securities Class Action Lawsuit 01/07/2018

If you purchased shares of Liberty Health Sciences Inc. (OTC: LHSIF), you have certain options and for certain investors are short and strict deadlines running. Deadline: March 8, 2019. OTC: LHSIF investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Liberty Health Sciences
Case Name: 
Liberty Health Sciences Shareholder Class Action Lawsuit 01/07/2018
Case Status: 
Lawsuit Filed
Affected Securities
OTC: LHSIF
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/07/2019
Class Period Begin: 
06/28/2018
Class Period End: 
12/03/2018
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
03/08/2019
Summary: 

An investor in shares of Liberty Health Sciences Inc. (OTC: LHSIF) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Liberty Health Sciences Inc. in connection with certain allegedly false and misleading statements made between June 28, 2018, and December 3, 2018.

Toronto, Canada based Liberty Health Sciences Inc. engages in the production and distribution of medical cannabis primarily in the State of Florida. Liberty 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.

According to the complaint the plaintiff alleges on behalf of purchasers of Liberty Health Sciences Inc. (OTC: LHSIF) common shares between June 28, 2018, and December 3, 2018, that the defendants violated Federal Securities Laws. More specifically, 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.