Schottensteins Beat Challenge to Fizzled Cannabis Company Merger

A Delaware judge on Thursday dismissed cannabis company Moxie’s claims against the billionaire Schottenstein family after its failed merger with a Canadian business backed by the family.

“Moxie has essentially acknowledged the breach of fiduciary duty and aiding and abetting claims were paper thin,” Vice Chancellor Morgan Zurn said in a bench ruling dismissing those claims with prejudice.

Delaware’s Court of Chancery lacks subject matter jurisdiction over Moxie’s remaining fraud claims against the family, which the company initially noted in its own briefs, she said.

Moxie sued American Eagle Outfitters Chairman and CEO Jay Schottenstein, along ...