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TORONTO, Oct. 31, 2024 /CNW/ - Berger Montague (Canada) PC, a Toronto-based law firm that focuses on representing investors in cross-border shareholder disputes, has expanded its investigation of Chesswood Group Limited (TSX: "CHW", USOTC "CHWWF"; and FRA: "Y30.F").
During late 2023, all appeared to be fine between investors and CHW. However, CHW announced that the Board of Directors had created a Special Committee to review various aspects of the Company and it was in breach of certain debt covenants but failed to disclose this material fact to the markets. CHW's shares were trading at $7.90 per share. Today, CHW's shares are locked at $0.90, and, in Canada, unable to trade. CHW's shares on the US OTC market continue to trade and are now as low as $0.18.
Since August 15, 2024, CHW's shares have been subject to a cease trade order issued by the Ontario Securities Commission because it would not release its 2Q 2024 financial statements.
On October 30, 2024, CHW released a news statement announcing that its lenders intentionally pushed it into creditor protection under the Companies' Creditors Arrangement Act ("CCAA"), which has initially stayed (paused) the pending shareholder class action. Despite what CHW's reported in this news statement, its lawyers accepted service of the shareholder class action statement of claim weeks ago and a motion judge had already been appointed. "I am anticipating that counsel for Chesswood is going to seek a motion to forbid investors to recover any monies from Chesswood and its third-party D&O carriers; but that has never succeeded on the merits but only causes further delays for investors," Andrew Morganti reported, a lawyer that saw the very same tactic by the lawyers representing CHW and FTI Consulting Canada, Inc.
If you purchased shares of Chesswood Group Limited between August 8, 2023 and July 22, 2024, and would like to know more about our investigation or have information to share, please contact us at Canadainfo@bm.net.
In preparation for the investors' response to the "Initial Order" to be filed with the Court, we encourage investors to register their interest to be included in the list of investors that support the shareholder class action to remove the stay of litigation and pursue damages against the negligent directors and officers.
Berger Montague (Canada) PC is one of the leading Canadian law firms that represent investors in shareholder class actions involving Canadian companies that list their securities on stock exchanges located in Canada, Germany, and the United States.
SOURCE Berger Montague (Canada) PC