OTC Trades Were Not ‘Domestic Transactions,’ Not Actionable, Defendants Argue

Mealey's (March 10, 2020, 1:33 PM EDT) -- BROOKLYN, N.Y. — Dismissal of claims in an amended shareholder class action against a manufacturer of cannabidiol (CBD) products, its subsidiary and certain of its senior executives is warranted because shareholders have failed to sufficiently plead that the shareholders committed any violations of the federal securities laws that would allow a federal district court to determine that the over-the-counter (OTC) trades of the company’s stock were “domestic transactions” subject to liability pursuant to the Securities Exchange Act of 1934, the defendants argue in a March 6 motion to dismiss filed in New York federal court (In re Curaleaf Holdings Inc. Securities Litigation, No. 19-4486, E.D. N.Y.)....