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Trulieve Cannabis Investors Allege Profit Inflation, Stock Drop

Dec. 31, 2019, 5:40 PM

Trulieve Cannabis Corp. allegedly misled investors about the true value of its marijuana plants and a real estate deal with its CEO’s husband, according to a complaint in New York federal district court.

The medical marijuana firm didn’t tell investors that its markup on its cannabis plants was “excessive and unreasonable” and inflated Trulieve’s reported gross profit, the would-be class complaint in the U.S. District court for the Eastern District of New York says.

Trulieve also allegedly concealed a real estate transaction with an entity controlled by Chief Executive Officer Kim Rivers’s husband. The entity allegedly bought the land in ...