Pot Investor Class Actions Doubled In Past Year

By Jack Queen (April 24, 2020, 4:15 PM EDT) -- The number of securities class actions filed against cannabis companies has more than doubled over the past year, a sign that the volatile and highly regulated sector has become fertile ground for shareholder suits, according to a study by Goodwin Procter LLP.

Investors filed 13 proposed class actions against publicly traded cannabis companies in 2019 compared to just six the previous year, according to the study released Thursday. The trend tracks with a similar uptick in consumer class actions as the cannabis sector matures, exposing firms to heightened scrutiny from regulators and shareholders.

"There's going to be continued legal and regulatory...

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