FSD PHARMA, INC.
SECURITIES CLASS ACTION SETTLEMENT

ANNE MILLER V. FSD PHARMA, INC.
CV-19-614981-00CP

This claims administration website was updated on March 28, 2023

ALL SEPTEMBER DISCLOSURE CHEQUES HAVE BEEN ISSUED

ALL SEPTEMBER DISCLOSURE AND NOVEMBER DISCLOSURE CHEQUES RETURNED HAVE BEEN REISSUED

ALL NOVEMBER DISCLOSURE CHEQUES NOT PROCESSED BY TD BANK HAVE BEEN REISSUED

SEPTEMBER DISCLOSURE CHEQUES

✔ All September Disclosure cheques have been sent by regular mail through Canada Post.
✔ The cheques were mailed to the address on your Claim Form.
✔ Please make sure your address is up to date in the online claims administration portal.
✔ All September Disclosure cheques must be cashed by May 31, 2023.

NOVEMBER DISCLOSURE CHEQUES

  • November Disclosure cheques that were deposited and returned as “Not Traceable” by your financial institution prior to January 3, 2023 and have been reported to Trilogy via email or phone, are being reissued.
  • November Disclosure cheques that were deposited after January 4, 2023, have, and continue to be successfully deposited and processed by our financial institution. If you have not attempted to deposit your November Disclosure cheque, and have not reported any error to Trilogy, please deposit your cheque with confidence.
  • If you have reported to Trilogy that your cheque was processed as “Not Traceable” and requested a replacement cheque, PLEASE DO NOT attempt to redeposit a second time. All cheques reported to Trilogy have a STOP PAYMENT on the cheque with our financial institution and are being reissued.
  • Attempting to redeposit your initial cheque a second time may result in bank fees with your financial institution when your initial cheque is deposited a second time and reversed. These fees will be the responsibility of the Class Member.
  • Our financial institution will reverse all duplicate payments to Claimants, should any Claimant deposit both the original and the replacement cheque.
  • November Disclosure cheques are being reissued in the order of the cheque number of the previously issued cheque. For example, cheque number 500, 501, 502, etc.
  • All November Disclosure cheques reported to Trilogy by February 1, 2023, will be reissued by February 10, 2023.
  • No payments will be e-transferred.
  • All reissued November Disclosure cheques must be cashed by July 1, 2023.

INTERNATIONAL CLAIMANTS

  • Wire-transfer instructions are currently being sent to you for completion.
  • Wire-transfers will occur within five (5) business days of receipt of complete and accurate banking information.

Once again, please accept my apologies for the issues regarding the processing of the November Disclosure cheques. And Thank you for your continued patience while we worked with our financial institution to make sure cheques are processed going forward.

We appreciate that you have been inconvenienced while we worked with the TD Bank to assure that cheques that were previously presented for payment and denied are not cashed after we reissue the second cheque. It took longer than anticipated to resolve this issue with our financial institution. We need to be very clear that no payments are to be reissued until we have all cheques verified and arrangements made that no Claimant receives a duplicate payment. You will receive your Distribution payment in due course as cheques are currently being reissued. We anticipate all November Disclosure cheques to be reissued by February 10, 2023.

This issue occurred at the printer when the cheques were coded incorrectly. I take full responsibility for this and fixing the mistake. We are doing everything as quickly as possible to make this right, while protecting the money in the Net Settlement Fund, and taking care of all our Class Members. Please let us know if you have incurred bank charges as a result of this issue and we will reimburse you accordingly.

May I please ask you to be patient while we resolve this issue for all Class Members.

Yours truly,

Paul Battaglia

SEPTEMBER DISCLOSURE

The Claims Administrator’s recommendations to the Court seeking amendments to the Plan of Allocation to increase the amount paid to September Disclosure Claimants has been approved by the Court. We now have authorization from the Court to make Distributions to September Disclosure Authorized Claimants.

The Court agreed with Trilogy’s recommendations to reallocate the overage from the November Disclosure Compensation Fund to the September Disclosure Compensation Fund. This increased the September Disclosure Compensation Fund by $292,758.99 from $748,500 to $1,041,258.99. This increased the Pro Rata payments to the September Disclosure Authorized Claimants.

September Disclosure Class Members filed 3,598 Claim Forms with a total Maximum Entitlement of $25,495,547.69.

September Disclosure Claim Forms approved equaled 1,582 with a total Maximum Entitlement of $14,500,174.65.

September Disclosure Compensation Funds available for payment is $1,041.258.99. This is the reason the Pro Rata amount and percentage is low.

All September Disclosure Authorized Claimants are to receive the Pro Rata Payment of their Maximum Entitlement. September Disclosure Authorized Claimants WILL NOT receive their Maximum Entitlement. The amount of the cheque you will receive is the amount of your Pro Rata Payment.

As explained by Class Counsel to the Court, (the lawyers who represent Class Members):

“The two disclosure periods (September and November) were designed to reflect the increased litigation risk faced in addressing the knowledge requirement of a non-core disclosure document (such as the September Disclosure) and the economic reality that FSD could not pay the damages resulting from the earlier date (the September period).

The split between the September Disclosure and November Disclosure was thus meant to maximize recovery for those that Class Counsel considered to have the stronger claim (and for which leave was obtained), while providing recovery also for the still-meritorious original period.

Despite the real reasons for the bifurcated distribution, the payout process under the Claims Administration has now resulted in the need to re-balance the funds between the September and November Disclosure periods, namely, because of an unexpectedly high percentage of recovery in the November Disclosure period.

This would leave approximately $240,457.28 ($292,758.00) in overage from the November Disclosure. By allocating the overage from the November Disclosure to the September Disclosure, the Pro Rata Distribution for the September Disclosure Period Authorized Claimants will increase approximately 1.6350%, resulting in more equitable Distribution for Authorized Claims and without compromising the Pro Rata Distributions payments to the November Disclosure Authorized Claimants.

Pursuant to Trilogy’s recommendation to the Court, a term must be added in an Amended Plan of Allocation to allow for a transfer of the overage funds from the November Disclosure to the September Disclosure.”

A copy of the proposed Amended Plan of Allocation is also available on the document’s webpage. Please see the documents webpage at https://www.fsdsecuritiesclassaction.com/case-documents to review the Court approved Plan of Allocation and Settlement Agreement. The relevant sections of the Plan of Allocation are posted below.

CALCULATION OF THE DISTRIBUTION AND MAXIMUM ENTITLEMENT

  1. The Administrator will allocate 30% of the Compensation Fund to Authorized Claims in respect of Qualified Shares (September Disclosure) to create the Compensation Fund (September Disclosure). The Administrator will then allocate 70% of the Compensation Fund to Authorized Claims in respect of Qualified Shares (November Disclosure) to create the Compensation Fund (November Disclosure).
  2. The Administrator will allocate all the Authorized Claims into these two Categories (i.e., September Disclosure and November Disclosure) depending on when Authorized Claimants purchased Qualified Shares.
  3. Based upon each Authorized Claimant’s Maximum Entitlement within each Category, they will receive their pro rata distribution based on the Total Damages in each Category. This will be done first by dividing the Compensation Fund (September Disclosure) by the Total Damages (September Disclosure) to calculate a percentage recovery per dollar lost defined herein as the “Pro Rata Distribution (September Disclosure)”, and by dividing the Compensation Fund (November Disclosure) by the Total Damages (November Disclosure) to calculate a percentage recovery per dollar lost defined herein as the “Pro Rata Distribution (November Disclosure)”.
  4. The Administrator will then multiply the Pro Rata Distribution (September Disclosure) by each Authorized Claimant’s Maximum Entitlement (September Disclosure) to arrive at the Distribution (September Disclosure) to be paid to each Authorized Claimant in that Category, and multiply the Pro Rata Distribution (November Disclosure) by each Authorized Claimant’s Maximum Entitlement (November Disclosure) to arrive at the Distribution (November Disclosure) to be paid to each Authorized Claimant in that Category.

You may review your Claim in the online claims administration portal at https://portal.fsdsecuritiesclassaction.com

NOVEMBER DISCLOSURE

We now have authorization from the Court to make Distributions to November Disclosure Authorized Claimants as recommended by Trilogy Class Action Services. All November Disclosure Authorized Claimants are to receive 100% of their Maximum Entitlement. The amount of the cheque you will receive is the amount of your Maximum Entitlement.

Pursuant to the Court approved Plan of Allocation:
“In no event shall an Authorized Claimant receive a Distribution greater than his/her/its Maximum Entitlement”

Pursuant to the Court approved Plan of Allocation:

“If for any reason an Authorized Claimant does not cash a cheque within six (6) months after the date on which the cheque was set (sent) to the Authorized Claimant, the Authorized Claimant shall forfeit the right to compensation and the funds shall become available for allocation to other Authorized Claimants on a pro rata basis up to each Authorized Claimant’s Maximum Entitlement in each Category. No cheques will be reissued.”

It is important that Class Members check on a regular basis the website at  www.fsdsecuritiesclassaction.com or the pop-up message when you log into the portal to review the status of your Claim.  

  • ALL MAXIMUM ENTITLEMENT AND PRO RATA PAYMENTS WILL BE POSTED IN CLAIMANT’S INDIVIDUAL FILE IN THE ONLINE CLAIMS ADMINISTRATION PORTAL AT https://portal.fsdsecuritiesclassaction.com/
  • CHEQUES WERE MAILED TO AUTHORIZED CLAIMANTS ON DECEMBER 2, 2022. PLEASE CHECK WITH CANADA POST FOR DELIVERY TIMES
  • ALL FUNDS WILL BE PAID IN CANADIAN DOLLARS.
  • IF YOU ARE A FOREIGN INVESTOR, PLEASE CONTACT OUR OFFICE TO MAKE WIRE-TRANSFER ARRANGEMENTS FOR PAYMENT:
  • PRO RATA PAYMENTS CALCULATED TO BE LESS THAN $100 WILL NOT BE PAID.

Please contact our office if you have any questions or require additional information.

Trilogy Class Action Services,
117 Queen Street, P.O. Box 1000,
Niagara-on-the-Lake, ON, L0S1J0

Toll Free: (877) 400-1211

How do I get more information?

We are here to help! If you have any questions or require further information about this class action, please complete this form and submit. We will respond within 24 to 48 hours.

Please see the contact page of this website for contact information for Class Counsel.

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