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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of March 20, 2020 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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March 11, 2020 - The court granted final approval.
October 25, 2019 - The court preliminarily approved the settlement.
September 23, 2019 - A stipulation of settlement was filed by the parties.
April 5, 2019 - An amended complaint was filed.
October 6, 2018- An investor in shares of Namaste Technologies Inc. (OTC: NXTTF) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Namaste Technologies Inc. in connection with certain allegedly false and misleading statements made between November 29, 2017 and October 4, 2018.
According to the complaint the plaintiff alleges on behalf of purchasers of Namaste Technologies Inc. (OTC: NXTTF) common shares between November 29, 2017 and October 4, 2018, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between November 29, 2017 and October 4, 2018, the defendants made false and/or misleading statements and/or failed to disclose that Namaste Technologies Inc. had sold its wholly-owned U.S. subsidiary to Namaste executives, that consequently, Namaste Technologies Inc. did not sell its U.S. subsidiary in an arm’s length transaction, and that as a result, defendants’ statements about the company’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Canada based Namaste Technologies Inc., through its subsidiaries, operates as a cannabis e-commerce company.
Namaste Technologies Inc. reported that its Total Revenue rose from $3.48 million for the 12 months period that ended on August 31, 2016 to $10.98 million for the 12 months period that ended on August 31, 2017 and that Net Loss over those respective time periods increased from $2.15 million to $17.35 million. Shares of Namaste Technologies Inc. (OTC: NXTTF) grew from $0.94 per share in June 2018 to as high as $30.4 per share in September 2018.
On October 4, 2018, Citron Research published a report titled, “Namaste: Citron has exposed complete FRAUD that underpins the ‘Business’ of Namaste,” stating that CEO “[Sean] Dollinger said he sold [an] asset to an arm’s length party…but it was really sold to David Hughes who has been with Namaste since Feb 2015 (and Paul Burn who has been with Namaste since 2016).”
The report further states that “Namaste has lied to its shareholders, Canadian Regulators, US Regulators; and most of all has attempted to hide US assets from the Justice Department in an attempt to obtain a US listing.”
Shares of Namaste Technologies Inc. (OTC: NXTTF) closed on October 4, 2018, at $1.732 per share.