Welcome to the PreveCeutical Securities Litigation Website.
If you acquired securities of PreveCeutical Medical Inc. (“PreveCeutical”) [CSE: PREV, OTCQB: PRVCF, FSE: 18H, CUSIP: 7414E] from and including April 9, 2018, to and including November 26, 2018, you may be entitled to compensation under the Settlement.
In order to claim compensation from the Settlement Fund, PreveCeutical Class Members must file a Claim, including all required documentation, before AUGUST 15, 2025.
The information contained on this web page is only a summary of the information presented in more detail in the Settlement Administration Plan.
What the Action is About
On July 11, 2019, an action styled Tietz v BridgeMark Financial Corp., et al., Action No. S- 197731, was commenced in the Supreme Court of British Columbia (Vancouver) (“B.C. Court” and “Action”) against various defendants including PreveCeutical and certain former directors and executive officers (“Insiders”).
The Action arose from private placements in ten public companies, including PreveCeutical, between February and August 2018. It alleges that the private placements were part of a fraudulent investment scheme and that the companies entered into consulting agreements with the subscribers to the private placements and their designated associates as a condition of the subscribers’ participation in the private placements.
Specifically, with respect to PreveCeutical, it is alleged that, between April 9, 2018 and November 26, 2018 (the “PreveCeutical Class Period”), PreveCeutical Corp. released certain disclosure documents that were materially misleading as to the true substance and effects of the private placements. The Plaintiffs allege this resulted in damage to PreveCeutical Class Members.
The Action alleges the scheme was exposed and the alleged misrepresentations were publicly corrected on November 26, 2018, when, among other things, the Executive Director of the B.C. Securities Commission published a news release announcing an ongoing investigation into the private placements.
PreveCeutical Settlement
On November 18, 2021, the Plaintiffs entered a settlement with PreveCeutical and the Insiders to entirely resolve the allegations made against it in the Action and to resolve the claims made against them in the Action (“PreveCeutical Settlement” and “PreveCeutical Settling Defendants”).
The PreveCeutical Settlement provides settlement funds of CDN $350,000 (“PreveCeutical Settlement Fund”) plus the assignment to the Plaintiffs of BCSC Action No. S 1813498, in which PreveCeutical sues certain defendants in the Action, alleging that PreveCeutical was the victim of fraud, conspiracy, breach of contract, and other wrongs by those Defendants for the same transactions involving PreveCeutical that are the subject of the claims asserted in the Action.
The PreveCeutical Settlement also provides that the PreveCeutical Settling Defendants will cooperate with the Plaintiffs in prosecuting the Action against non-settling defendants and the unnamed consultants referred to in the Action.
THE SETTLEMENT ADMINISTRATION PLAN ONLY PROVIDES FOR CASH COMPENSATION TO PREVECEUTICAL CLASS MEMBERS.