Major Canadian pot companies facing proposed class-action lawsuits in the U.S.
Each producer is accused of misleading investors or failing to disclose certain problems with their businesses
CBC News (Canada)
Sunday, January 19, 2020
Sunday, January 19, 2020
Some of Canada's biggest cannabis producers are facing proposed class-action lawsuits in the United States after investors were hit with steep financial losses in the stock market. At least nine U.S. law firms are pursuing cases against Canopy Growth, Aurora Cannabis and Hexo Corp. in American courts. Although the allegations vary, each pot producer is accused of misleading investors or failing to disclose certain problems with their businesses. When those problems became publicly known, the lawsuits claim, share prices plunged and investors were stuck with losses. "[Investors] are mad; they were taken by surprise," said Reed Kathrein, a lawyer at Hagens Berman Sobol Shapiro LLP, which is pursuing claims against all three producers.
