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Cannabis Company Tilray Wins Bid to Dismiss Shareholder Lawsuit

Sept. 28, 2021, 6:32 PM

Tilray Inc. got a would-be securities class action dismissed, after a federal court in Manhattan said the shareholders failed to adequately allege the defendants intended to defraud investors in the cannabis company.

The U.S. District Court for the Southern District of New York said the shareholders’ allegations over the company’s motivation for a 2019 downstream merger failed “to conjure the strong inference” of fraud required under federal law.

Judge Paul A. Crotty will allow the plaintiffs leave to amend, however, writing that he recognized the lawsuit’s deficiencies may be curable.

Under the Private Securities Litigation Reform Act, plaintiffs have to ...