Tilray, Inc. Securities Class Action Lawsuit

Case Summary

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.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: January 15, 2019 - March 2, 2020
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