Investor Claims Against Cannabis Company Dismissed On Scienter Grounds

Mealey's (May 14, 2021, 8:37 AM EDT) -- NEWARK, N.J. — A federal judge in New Jersey on May 6 ruled that although lead plaintiffs in a securities class action have sufficiently pleaded some actionable misrepresentations or omissions made by a Canadian cannabis distributor and several of its current and former executive officers regarding the company’s market expectations for its sale of recreational cannabis products, in pleading their federal securities law claims, the lead plaintiffs have failed to show that the defendants acted with a strong inference of scienter....