Cannabis Producer Aphria Faces Shareholder Class in Fraud Suit

Aphria Inc. shareholders may represent a class in a suit alleging the Canadian cannabis producer and distributor misled investors about the condition of some assets it acquired, a federal court in New York ruled.

The allegations that stockholders relied on company misrepresentations are capable of common proof through a fraud-on-the-market theory, Judge George B. Daniels said Tuesday for the US District Court for the Southern District of New York.

Daniels appointed Shawn P. Cunix as class representative. Another investor, Elizabeth Alexander, didn’t adequately show she purchased shares in a domestic transaction and therefore can’t serve as a lead plaintiff, Daniels ...