GREY:CNTTQ - Post by User
Post by
codyesson Feb 06, 2020 7:34pm
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Post# 30654855
CLASS ACTION INSIGHT...
CLASS ACTION INSIGHT...Is the class action suit against Canntrust the company or the members of Canntrust?
After speaking with the legal team who is representing Canntrust shareholders, it has been told that they are going after the auditors, underwriters, and several no longer employeed with the company.
Why is this significant?
They will be recovering funds from the insurance companies that represent the past employees, auditors, and underwriters that committed the crimes.
Canntrust will not bear the blunt of this class actions although they definitely may contribute with a small settlement. Yes the current CEO is also on the suit, but I believe that will be worked out with a settlement.
it would be very counter productive to sue the company itself as shareholders would be robbed of any chance of actually getting their money back through a recovery of shareprice.
Why?
When a class action does commence and is settled, if you invested $10,000 you'd be lucky to receive 10-15% of your investment back through the settlement.. The only winners are the lawyers who take a contingency of probably 35% of the total sum recovered...