LEGAL ACTION
An investor is publicly suing Tilray Brands Inc, the Canadian pharmaceutical and cannabis company and one of the most popular cannabis stocks out there, reportsBenzinga.
Investor Michael Hudson has accused Tilray of “breaches of fiduciary duties, unjust enrichment, and waste of corporate assets, and violations of the Securities Exchange Act of 1934”.
According to the publication, the suit states the first category of false statements relates to the value of Tilray’s inventory and its gross margins, and the second category of false statements relates to the entrance into, and the value of the Company’s agreement with Authentic Brands Group (ABG), which the plaintiff claims was made to prop up the stock price and was actually not as good as it was claimed it to be.
It reports that Tilray told Law360has stated that the complaint “is substantially similar to the other derivative complaints filed in the [Southern District of New York] and in the District of Delaware, which are stayed pending the outcome of the securities class action motion to dismiss process”, and that the company believes that the underlying claims of these actions are without merit and plans to defend them.
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