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Cannabis Firm Canopy Growth Beats Investor Allegations, for Now

May 11, 2021, 6:10 PM

Canopy Growth Corp. fought off allegations it made misleading statements about its inventory and production facilities, although a federal judge in New Jersey will let the investors file a new complaint.

Investors accused the Canada-based cannabis company of misleading them about its oils and gelcaps inventory, dry flower inventory, and production facilities. But the would-be class didn’t properly allege Canopy acted intentionally when it made the purportedly misleading statements, the U.S. District Court for the District of New Jersey said.

The Private Securities Litigation Reform Act’s safe harbor provision protects some of Canopy’s challenged statements, Judge Kevin McNulty’s opinion ...

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