PreveCeutical Medical Inc (CSE:PREV) (OTCMKTS: PRVCF) announced Friday that it has been named as a defendant in a lawsuit that it intends to vigorously defend against, having already taken legal action against certain of the other defendants named in the claim.
The firm said in a statement the claim was brought under the British Columbia Class Proceedings Act and alleges certain misrepresentations in connection with various private placements conducted by the defendants.
The plaintiffs are seeking an unspecified amount of damages for claims arising from alleged misrepresentations regarding the company's disclosure of its June 2018 private placement.
READ: PreveCeutical Medical successfully infuses CBD with its Sol-gel pain-relief technology
The transactions, which are the subject of the claim, are also currently being investigated by the British Columbia Securities Commission.
PreveCeutical filed a notice of civil claim with the Supreme Court of British Columbia against certain of the defendants named in the claim, collectively known as the BridgeMark Group.
In the notice, PreveCeutical Medical made claims against the BridgeMark group, including for fraudulent misrepresentation and breach of contract, in connection with services that the BridgeMark group failed to provide to the company.
READ: PreveCeutical Medical reports positive results from its dual gene therapy research program
It also covered various consulting agreements and subscription agreements entered into between Preveceutical Medical and certain members of the BridgeMark group.
To date, PreveCeutical has obtained default judgment against three members of the BridgeMark Group: Essos Corporate Services Inc., Detona Capital Corp. and JCN Capital Corp. The amount of damages and costs to be awarded to the company against the three members remains to be assessed by the court and the firm is continuing to pursue its claims against the other members of the BridgeMark Group.
Shares of PreveCeutical were flat at C$0.05.
Contact Katie Lewis at katie@proactiveinvestors.com