Badesha v. Cronos Group
HARPREET BADESHA
Law Firm / Organization
Not Specified
Lawyer(s)

Paul Bates

CRONOS GROUP, INC.
MICHAEL GORENSTEIN
JERRY BARBATO

2023 ONSC 5678 Decision:

  • The Ontario Superior Court of Justice certified the class action brought by Harpreet Badesha against Cronos Group Inc. and its executives.
  • The claim alleges misrepresentation under the Ontario Securities Act (OSA), s. 138.3, regarding Cronos’ financial disclosures in 2019.
  • The class includes all investors who acquired Cronos shares in the secondary market between May 9, 2019, and March 30, 2020.
  • The court rejected the defendants’ forum non conveniens argument, allowing U.S.-based shareholders to be included in the Ontario class action.
  • Cronos previously settled regulatory actions with the Ontario Securities Commission (OSC) and the U.S. Securities and Exchange Commission (SEC), admitting to overstating revenue and inadequate financial controls.
  • The defendants were ordered to pay $125,000 in costs to the plaintiff?.

2025 ONSC 743 Decision:

  • The plaintiff sought to examine Anna Shlimak, a former investor relations consultant for Cronos, as part of the discovery process.
  • The court denied the request, ruling that the defendants had already fulfilled their obligations by producing CEO Michael Gorenstein as Cronos’ representative.
  • The court found that Gorenstein had prepared thoroughly and that the plaintiff had voluntarily foregone an extra day of discovery with him.
  • The plaintiff was given the option to submit written interrogatories to Gorenstein, including questions related to Shlimak’s knowledge.
  • The plaintiff was ordered to pay $10,000 in costs to the defendants?.

Final Outcome Based on Both Decisions:

  • The class action remains certified, with both Canadian and U.S. shareholders included.
  • The plaintiff was successful in certifying the class action and resisting the forum non conveniens motion.
  • However, the defendants successfully opposed additional discovery against a former consultant.
  • The net costs awarded:
    • Plaintiff won $125,000 in the 2023 decision.
    • Plaintiff had to pay $10,000 in the 2025 decision.
    • Final net costs awarded to the plaintiff: $115,000??.
Superior Court of Justice - Ontario
CV-20-00641990-00CP
Class actions
$ 115,000
Plaintiff