Cannabis Co. Hexo Beats Another Shareholder Class Action

Law360 (June 9, 2021, 8:11 PM EDT) -- Cannabis company Hexo Corp. has again beaten a proposed securities class action alleging it misled investors before its stock price plummeted, with a New York state judge echoing a previous federal ruling that shareholders didn't show the company knew about lower-than-expected demand.

Judge Andrew Borrok said in an order dated June 3 that a complaint brought by stockholder Matthew Leung failed to state violations of the Securities Act of 1933 because it failed to show any contemporaneous facts indicating Hexo "knew, at the time of the offering, of the subsequent issues that arose with respect to ... Québec's government-run cannabis dispensary."...

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