Pot Biz Tilray Wants Investor Suit Over $180M Writedown Axed
Law360 (December 7, 2020, 6:53 PM EST) -- Canadian pot giant Tilray has asked a Manhattan federal court to toss a securities fraud suit alleging it blindsided investors with $180 million in accounting charges, arguing the asset write-downs stemmed largely from unforeseeable regulatory setbacks.
Tilray said Friday that its asset values were based on reasonable projections for the CBD industry's growth but had to be revised downward after the U.S. Food and Drug Administration failed to issue comprehensive regulations for the substance as quickly as hoped. The medical marijuana cultivator said the investors' proposed class action is an "illogical and impermissible fraud by hindsight" case.
"The industry and retailer...
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