TORONTO, Aug. 5, 2026 /CNW/ -- A proposed class action was commenced against Canopy Growth Corporation ("Canopy"), two of Canopy's then-officers, David Klein and Judy Hong, and its former auditor KPMG LLP ("KPMG") ("the Action"). The Plaintiff and KPMG have reached a proposed partial settlement of the Action which is subject to approval by the Ontario Superior Court of Justice. If approved by the Court, the Action would end against KPMG. The Action would continue against the other Defendants.

The proposed partial settlement amount is CAD $3,500,000 (the "Settlement Amount"), including Class Counsel's fees, applicable taxes and expenses, and interest. The Defendant KPMG denies any such liability and resulting damages. By agreeing to the proposed partial settlement, the Plaintiff and KPMG avoid the cost, time and uncertainty of proceeding to a trial.

The class action has now been certified against KPMG, on consent for settlement purposes only. This notice provides information about this proposed partial settlement and related matters and how to exclude yourself from ("opt-out of") the class action.

Your legal rights are affected even if you do nothing. Please read this notice carefully.

The class action was commenced on behalf of all persons or entities, other than certain Excluded Persons, who during the period from June 1, 2021 to and including June 22, 2023 (the "Class Period") acquired Canopy's securities in the secondary market and who held some or all of those securities until the close of trading on May 10, 2023 or June 22, 2023 and who either:

1. 1. are residents of Canada or were residents of Canada at the time of such acquisitions, regardless of the location of the exchange on which they acquired Canopy's securities; or
   2. acquired Canopy's securities on an exchange in Canada or another exchange located outside of the United States, regardless of where they reside or are domiciled (the "Class").

There will be a hearing (the "Settlement Approval Hearing") in which Class Counsel will request the Court to approve: (i) the partial settlement; and (ii) their legal fees and expenses. The Settlement Approval Hearing shall take place on December 10, 2026 at the Courthouse at Osgoode Hall, 130 Queen St. W., Toronto, ON.

If you do not wish to participate in this partial settlement and then to continue to be bound by the class action, you must opt-out of the class action before that Hearing, as set out below. A copy of the Opt-Out Form is available here: https://knd.law/class-actions/canopy-growth-corp/ 

At the Settlement Approval Hearing, the Court will determine whether the proposed partial settlement is fair, reasonable and in the best interests of the Class. At the same Hearing, Class Counsel will also seek Court approval of their request for fees, equating to 30% of the Settlement Amount, plus reimbursement of their relevant expenses and any applicable taxes. Class Counsel has been working pursuant to a contingency-fee agreement and has not been paid as the Action has proceeded, and has paid all of the out-of-pocket expenses of conducting the Action. Class Counsel will be requesting that the legal fees and disbursements be deducted from the Settlement Amount.

At the Settlement Approval Hearing, the Plaintiff and Class Counsel will recommend to the Court that the net Settlement Amount be distributed to Class Members at a later date, once this class action is concluded against the other Defendants, pursuant to a plan to be proposed to the Court for approval at that time, to distribute the current net Settlement Amount, and any additional funds arising from a settlement with or judgement against the remaining Defendants, if any.

YOUR LEGAL RIGHTS AND OPTIONS FOR THIS PROPOSED SETTLEMENT:

1. Stay in the Class Action and Do Nothing: If you fall within the Class definition, you do not have to do anything to stay in the class action and to be eligible to receive benefits from this partial settlement, if approved, but you will give up your right to sue any of the Defendants (not just KPMG) on your own.
2. Stay in the Class Action and Object: If you want to object to or comment upon the proposed partial settlement or the payment of Class Counsel's fees, fill out the Form available at: https://knd.law/class-actions/canopy-growth-corp/. You must submit your Form by email to CanopyGrowth@KND.law by November 25, 2026 at 11:59 p.m. ET for it to be valid.
3. Opt-Out of the Class Action: You can exclude yourself from the class action and the proposed settlement by filling out an Opt-Out Form available at https://knd.law/class-actions/canopy-growth-corp/, or by requesting it from Class Counsel at the email address below. If you opt-out of the Action, you are removing yourself from the lawsuit against all Defendants, not just KPMG, and would have to pursue your own action at your own expense. You must submit your Opt-Out form by email to CanopyGrowth@KND.law by September 21, 2026 at 11:59 p.m. ET for it to be valid.

These rights and options and the deadlines to exercise them and further information about the proposed partial settlement are explained in a longer notice available at https://knd.law/class-actions/canopy-growth-corp/.

In addition, more details may be found in the Settlement Agreement. You can obtain a copy of the Settlement Agreement at https://knd.law/class-actions/canopy-growth-corp/.

The lawyers for the Plaintiff and the Class in this class action are KND Complex Litigation. You can send your questions by email to them at CanopyGrowth@KND.law.

The Ontario Superior Court of Justice has authorized distribution of this Notice.
Questions about this Notice should NOT be directed to the Court.

SOURCE KND Complex Litigation