By Jack Queen (January 8, 2021, 9:17 PM EST) -- Investors accusing major pot company Canopy Growth of misleading them about the strength of the Canadian cannabis market urged a New Jersey federal court to keep their case alive, saying their allegations show executives knowingly concealed overproduction problems.

Six former Canopy employees have offered firsthand evidence that its cultivation sites churned out a surplus of low-quality cannabis that forced the company to take a CA$743 million ($585.5 million) write-down, the investors said Thursday. They argued Canopy's motion to dismiss was a half-baked effort to blame shareholders for their losses.

"Investors could not 'determine for themselves whether to invest' because defendants' disclosed...