People Mentioned
Partner, Disputes, Toronto
An investor class-action lawsuit against a company that predicted “explosive” growth that never materialized is an example of a case that typically settles before it goes to trial, says Craig Lockwood, partner and National Chair, Disputes, in an interview with The Globe and Mail.
“They very rarely go the distance to the point of a determination on merits,” says Craig. “If it goes the distance, it will be a multiyear process for sure.”
At the time the renewable natural gas technology company went public in 2021, the business predicted tremendous growth from building its own bioenergy plants. The lawsuit claims this assessment was based on unreasonable assumptions and accounting errors.
The lead plaintiff alleges the company failed to disclose that some of its revenue came from intersegment sales, which refer to one division of a company selling to another, meaning the company was claiming revenues based on work it was doing for itself.
The IPO prospectus contained a financial outlook that predicted revenue from its own bioenergy plants would skyrocket from $2 million in 2020 to $289 million in 2023, according to the latest version of the lawsuit’s statement of claim.
A ruling issued on November 13, 2025, by the Ontario Superior Court has allowed the case to proceed.
If you have a subscription to The Globe and Mail, you can read the full article by author Jameson Berkow posted on December 26, 2025.
People Mentioned
Partner, Disputes, Toronto
