Slater Vecchio LLP filed a proposed securities class action lawsuit on March 9, 2023, against Adastra Holdings Ltd. (CSE: XTRX), Adastra Labs Inc., and their Chief Executive Officer Michael Forbes.
The lawsuit, which contains allegations that are not proven in court, contends that the Defendants are liable for secondary market misrepresentation under British Columbia’s Securities Act because of inaccurate public representations they made on February 22, 2023, about the company’s ability to sell cocaine, which in turn artificially inflated the company’s stock price. Investors who purchased Adastra stock after the alleged public misrepresentations experienced losses when the stock dropped significantly after Adastra publicly corrected its own misrepresentations on March 3, 2023.
Saro Turner, partner at Slater Vecchio LLP, said “When companies make misrepresentations like this, it’s usually the investors who trusted them that get hurt the most. Our job is to stand up for them, and to help them get the compensation they deserve.”
The proposed class action is brought on behalf of all persons and entities who acquired common shares of Adastra Holdings Ltd. between and inclusive of February 22, 2023, and March 3, 2023.
If you purchased common shares of Adastra Holdings Ltd., Slater Vecchio LLP would like to hear from you. Please submit your information on our website at www.slatervecchio.com/class-action/adastra-holdings-securities-class-action/.