India Globalization Capital Inc. lost its bid for a quick exit from a would-be class case alleging it misled investors about sugar-free cannabis drink plans after a federal judge in Maryland found the claims sufficiently supported, according to an opinion docketed Friday.
Investors who accuse IGC of trying to “take advantage of a hot market trend” by touting a new marijuana products partnership with a Malaysian manufacturer alleged enough facts to “create a plausible inference of securities fraud,” the U.S. District Court for the District of Maryland said.
IGC’s stock price jumped “six-fold” on news of the company’s plans ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.