Accounting giant KPMG LLP has reached a proposed settlement in an investor class action alleging that its 2022 audit report for Canopy Growth Corp. contained a misrepresentation.
The Ontario Superior Court of Justice granted a motion brought by KPMG and the plaintiff in a proposed class action, certifying the case as a class action for the purpose of settling the case.
In 2023, the proposed class action on behalf of investors was filed against Canopy Growth, certain directors and officers, and its auditors, alleging that they overstated certain disclosures about sports drink subsidiary BioSteel Sports Nutrition Inc. — including that they “materially” overstated BioSteel’s revenue, its goodwill and the effectiveness of its internal controls.
Those allegations have not been proven.
In late 2025, the court granted leave and certified the case to proceed as a class action.
Now, the court has granted a certification motion to facilitate the proposed settlement with KPMG, which would cover investors who bought Canopy shares on the secondary market after June 1, 2021 and still had some of those shares up until May 10, 2023.
The terms of the settlement were not announced and won’t be released until the proposed class action against all defendants is resolved, the decision said.
In the meantime, the court approved a proposed notice to investors, and processes for investors to opt out of the proposed settlement.