Pot Co. Says Stock Buys Disprove $144M 'Sham' Asset Plot
Law360 (October 15, 2020, 5:47 PM EDT) -- Canadian cannabis company Aphria asked a Manhattan federal judge to reconsider his decision to keep a proposed securities class action against the company alive, arguing stock purchases by executives prove they didn't knowingly mislead investors.
The executives said Wednesday that the court overlooked their purchase of a total of 1.36 million shares during the time an investor claimed they were hiding the true value of "sham" assets they purchased in Latin America.
"It is well-established law (and entirely sensible) that an increase in stock holdings by a company's officers or directors is 'wholly inconsistent with fraudulent intent,'" Aphria said.
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