The so-called verified stockholder derivative suit was filed by shareholder Lee Morgan
A new lawsuit alleges the top brass of Canada-based cannabis company Tilray misled shareholders and engaged in insider stock sales during 2019 and early 2020.
The so-called verified stockholder derivative suit was filed by Tilray shareholder Lee Morgan on June 5 in the U.S. District Court for the District of Delaware. The complaint was filed on behalf of the company.
The complaint alleges the defendants – including Tilray CEO Brandon Kennedy, former Chief Financial Officer Mark Castaneda and several board members – breached their fiduciary duties regarding a revenue-sharing agreement between Tilray and lifestyle brand portfolio Authentic Brands Group (ABG) and engaged in insider trading surrounding that deal.
Under the deal, announced in January 2019, Tilray paid New York-based Authentic Brands Group $100 million, plus up to $250 million for achieving unspecified future milestones, in exchange for ABG developing, marketing and selling consumer cannabis products made with Tilray-supplied cannabinoids.
The court document is available here.
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