A company that once claimed it was developing technology based on scorpion venom has filed a civil claim against the firm’s former lawyer, claiming he is responsible for a controversial press release found to have contained misrepresentations.
The B.C. Securities Commission dropped its allegations against most of the group but ultimately alleged Preveceutical made misrepresentations in a news release. However, a panel of adjudicators ruled on May 2 that the news release was only misleading and not a misrepresentation in a legal sense, as it did not have a material impact on investors.
“As a result of the defendants’ breach of the standard of care, the plaintiffs have suffered various damages due to, among other things, their exposure to regulatory proceedings arising from the Notice of Hearing and the finding of the British Columbia Securities Commission that the news release and the material change report contained misrepresentations,” the claim states.