Canadian Cannabis Biz Hit With Investor Suit Over $143M IPO

Law360 (September 10, 2019, 9:56 PM EDT) -- A Sundial Growers stockholder has launched a proposed class action against the Canadian cannabis producer in New York state court, claiming the company misled investors ahead of its $143 million initial public offering by failing to disclose that a customer had returned more than half a ton of cannabis over quality issues.

Trisha Peters claims Calgary, Alberta-based Sundial Growers Inc. produced a false and misleading registration statement before its IPO last month by not mentioning that more than 1,200 pounds of cannabis was returned by a corporate customer for containing visible mold, parts of rubber gloves and “other non-cannabis material,” according...

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