See EDGAR in the US where Liminal filed the SEC Form -20 as required by US law. In it they disclose the major lawsuit filed by many Plaintiffs in a joint action against Liminal anf many other co defendaents. See https://www.sec.gov/Archives/edgar/data/1351172/000156459021015134/lmnl-20f_20201231.htm at page 131 in the report filed. Here is the relevant quote:
Legal Proceedings
We are, in the course of our business, subject to lawsuits and other claims. On April 15, 2019, we announced our intention to enter into a series of related arrangements to restructure its outstanding indebtedness, reduce our interest and certain other payment obligations, and raise sufficient cash to build a robust balance-sheet for the next phase of our development (collectively, the “Refinancing Transactions”), which included (i) an offering of Common Shares, (ii) the conversion of approximately $229 million of the outstanding debt into Common Shares, (iii) the adjustment of the terms of certain outstanding warrants and (iv) a rights offering to all shareholders whereby each shareholder received one right for each Common Share held, with each right entitling the holder thereof to subscribe for 20 Common Shares for aggregate proceeds of up to $75 million.
On March 2, 2021, we were served with an action instituted by multiple individual shareholder plaintiffs (the “Plaintiffs”) against the Company, Structured Alpha LP (“SALP”), Thomvest Asset Management (“Thomvest”), Consonance Capital Management LP (“Consonance”), as well as the directors (the “Directors”) that were on the Company’s Board on March 31, 2019 or on April 15, 2019 and certain officers of the Company (the “D&Os”, together with Liminal, SALP, Thomvest and Consonance, the “Defendants”).
The Plaintiffs allege, among other things, that, as part of the Refinancing Transactions, the Defendants (i) undervalued certain products, (ii) reduced certain of their operational activities, (iii) artificially devalued certain assets in order for them to be written off the balance sheet, (iv) conducted their business in a manner that prevented them from obtaining financing from certain parties and (v) never properly disclosed their financial difficulties, the alleged collective result of which was, among other things, that SALP and Thomvest were able to take control of the Company to the detriment of the minority shareholders.
The Plaintiffs seek almost $700 million in damages, approximately $664 million of which is based on the loss of future value of our shares.
The Company believes that the Plaintiffs’ claims are completely without merit and intends to vigorously defend itself. Defence and settlement costs associated with such lawsuits and claims can be substantial, even when these lawsuits and claims have no merit. Due to the inherent uncertainty of the litigation process, the resolution of any particular legal proceeding could have an adverse effect on the Company’s operating results or financial performance.