Investment firm alleges short-selling campaign
.jpg)
A $450 million lawsuit has been filed by Catalyst Capital Group against West Face Capital Inc. and Anson Group Canada alleging a short-selling conspiracy.
The suit was filed in the Ontario Superior Court Tuesday and claims that the hedge fund and asset management firms conspired with others in a campaign of short-selling, misinformation, and improper use of whistleblowing procedures relating to Catalyst subsidiary Callidus.
The allegation is that the “Wollfpack conspirators” were supporting borrowers who had defaulted on loans from Callidus.
None of the allegations have been proven in court.
Catalyst and Anson Group have not yet commented but a statement from West Face and its principal Gregory Boland strenuously denies the claims.
“Catalyst's allegations are completely devoid of merit, and will be defended vigorously at every turn,” the statement says.
“As will become perfectly clear as this matter proceeds, West Face has not shorted the shares of Callidus in more than two years. Moreover, West Face has had no discussions with Anson Group concerning any investment that Anson may have made in Callidus,” it continues.
Catalyst and West Face have faced each other in court before including a case during the battle for mobile wireless spectrum in 2015 as reported by Wealth Professional Canada.
The suit was filed in the Ontario Superior Court Tuesday and claims that the hedge fund and asset management firms conspired with others in a campaign of short-selling, misinformation, and improper use of whistleblowing procedures relating to Catalyst subsidiary Callidus.
The allegation is that the “Wollfpack conspirators” were supporting borrowers who had defaulted on loans from Callidus.
None of the allegations have been proven in court.
Catalyst and Anson Group have not yet commented but a statement from West Face and its principal Gregory Boland strenuously denies the claims.
“Catalyst's allegations are completely devoid of merit, and will be defended vigorously at every turn,” the statement says.
“As will become perfectly clear as this matter proceeds, West Face has not shorted the shares of Callidus in more than two years. Moreover, West Face has had no discussions with Anson Group concerning any investment that Anson may have made in Callidus,” it continues.
Catalyst and West Face have faced each other in court before including a case during the battle for mobile wireless spectrum in 2015 as reported by Wealth Professional Canada.
