Tilray, Inc. Securities Class Action Lawsuit
- Company Name
- Tilray, Inc.
- Stock Symbol
- Class Period
- January 15, 2019 to March 2, 2020
- Eastern District of New York
On March 6, 2020, the Tilray, Inc. securities class action lawsuit was filed charging Tilray and certain of its officers with violations of the Securities Exchange Act of 1934. The Tilray securities class action lawsuit was commenced in the Eastern District of New York on behalf of purchasers of Tilray securities between January 15, 2019 and March 2, 2020 (the “Class Period”) and is captioned Ganovsky v. Tilray, Inc., No. 20-cv-01240.
Tilray was founded in 2013 and is headquartered in Toronto, Ontario. Tilray engages in the research, cultivation, processing, and distribution of medical cannabis. Tilray offers its products to patients, physicians, pharmacies, governments, hospitals, and researchers.
On January 15, 2019, Tilray announced it had entered into a marketing and revenue sharing agreement with Authentic Brands Group (“ABG”), “an owner of a portfolio of global lifestyle and entertainment brands” (the “ABG Agreement”).
The Tilray securities class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Tilray’s business and operations. Specifically, defendants failed to disclose that: (i) the purported advantages of the ABG Agreement were significantly overstated; (ii) the underperformance of the ABG Agreement would foreseeably have a significant impact on Tilray’s financial results; and (iii) as a result, Tilray’s public statements were materially false and misleading at all relevant times.
Then on March 2, 2020, Tilray issued a press release announcing its financial results for the fourth quarter and full year 2019. Tilray reported a net loss for the year of $321.2 million, or $(3.20) per share, compared to a net loss of $67.7 million, or $(0.82) per share, for 2018. In addition, Tilray disclosed that it had “recorded non-cash charges of $112.1 million related to impairment of the [ABG A]greement as well as $68.6 million in inventory reserves.” On this news, Tilray’s stock price fell $2.33 per share, or 15%, to close at $13.02 per share on March 3, 2020.
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