Tilray Beats Investor Suit Over Vote to Increase Share Limit

Tilray Brands Inc. persuaded a judge to toss an investor’s lawsuit alleging the Canadian cannabis company tried to mislead them into increasing its share limit.

There’s no genuine fact dispute that the company can lawfully up its shares of common stock with only a majority of votes cast—rather than a majority of shares outstanding—to approve a proposed increased, Delaware’s Chancery Court said in a Nov. 27 opinion.

The stockholder class action complaint argued that a “single vote provision” of Tilray’s charter requires a majority of the voting power carried by all outstanding shares. The suit says the company unlawfully ...