Braxia Scientific Corp. Investors CAD 1.9MM Settlement

Braxia Scientific Corp. agreed to pay CAD 1.9 million to settle a securities class action lawsuit to avoid further litigation.

The class action lawsuit alleged that Defendants misrepresented the value of and ownership interest in four companies that Braxia had acquired in March and April of 2020 in its disclosure documents. On April 6, 2022, Plaintiff and Defendants reached an agreement to settle the class action.

The lawsuit specifically alleged that the Defendants: (1) misrepresented the value of four companies that Braxia had acquired in March and April of 2020; (2) overpaid significantly for all four companies; (3) failed to disclose that a shareholder and relative of the then-CEO, who had significant influence over Braxia, was also a part owner of all four companies and was being overcompensated with millions of dollars worth of shares in connection with Braxia's acquisitions at unreasonably high valuations; and (4) misrepresented Braxia's assets, liabilities, net loss, and other financial metrics in its financial statements during the Class Period. When the truth was revealed, the Company had to restate its financial statements to correct the alleged misrepresentations.

All persons and entities (other than certain excluded persons), who during the period of time from May 12, 2020, to March 11, 2021, inclusive, acquired Braxia’s securities in the secondary market and who held some or all of those securities until at least February 17, 2021, and who are residents of Canada or were residents of Canada at the time of such acquisitions, regardless of the location of the exchange on which they acquired Braxia’s securities; or acquired Braxia’s securities in the secondary market in Canada or another exchange located outside of the United States, regardless of where they reside or are domiciled.