TRST.TO class action law suit

News also came out this evening that the CEO was fired with cause and the Chair was forced to resign. Big chances are afoot. At this point, depending on when you bought it, you have two choices:

1. Hold and hope a white night comes in to buy the company at a reasonable price. You choose this option if you are ok with your investment going to zero. Its a high-risk option, but may help you recoup some of your losses.
2. Sell and take your lumps. If you hold it in a non-registered you'll be able to claim your losses against capital gains.

As for whether or not selling will impact your ability to join a lawsuit, I am by no means an expert. However, my understanding is that so long as you were a shareholder on record when the bad news came down, you are eligible to join the lawsuits. As I am not a TRST shareholder, I am not sure which one of the current (and I'm sure future) class action lawsuits to join.

We moved on from CannTrust in our Millennial Aggressive portfolio. We sent an e-mail out this morning.

The news that the Chairman and CEO knew about the illegal growing was probably the dagger to the heart for the company, and unfortunately in my opinion it will never recover. It was a situation that no investor would have known about, and nothing could have been done in terms of due diligence or research to prevent it.

If Health Canada is looking to make an example out of someone to stop this from happening in the future, I would imagine CannTrust would be the company they would do it to and potentially strip their license. If the company is purchased, I wouldn't expect it to be anywhere near the value of the stock prior to the news. These kinds of activities are permanently damaging to the company's reputation.

If CannTrust were to ever recover, I imagine it will be a significantly long road. Investors have a couple of options. For one, they could sell the stock and move on. Secondly, they could hope the company's licenses stay in tact, management gets overhauled and the company starts to recover. Or, finally investors could hope that a larger company purchases CannTrust to try and recover some of the loss.