Cannabis Co. Hexo Beats Investor Suit

Law360 (March 9, 2021, 9:19 PM EST) — A New York federal judge has tossed out a proposed securities class action alleging that cannabis company Hexo Corp. lied and withheld information from investors before losing them hundreds of millions of dollars, saying the shareholders didn’t show that the company had knowledge of lower-than-expected demand.

U.S. District Judge Naomi Reice Buchwald said in Monday’s opinion that lead plaintiffs John B. Medley and Timothy Sweeney didn’t properly support their Securities Act and Exchange Act claims against the Quebec-based cannabis supplier, individual directors and officers of the company, and a dozen underwriters of its initial public offering.

“Plaintiffs have not alleged facts detailing…

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