An investor is publicly suing Tilray Brands Inc (NASDAQ: TLRY), the Canadian pharmaceutical and cannabis company and one of the most popular cannabis stocks out there.
The Lawsuit: Allegations
Michael Hudson, who filed the lawsuit on March 1 in the Southern District of New York, accusing Tilray of “breaches of fiduciary duties, unjust enrichment, and waste of corporate assets, and violations of the Securities Exchange Act of 1934,” per the suit, which states the first category of false statements relates to the value of Tilray’s inventory and its gross margins, and the second category of false statements relates to the entrance into, and the value of the Company’s agreement with Authentic Brands Group (ABG).
The plaintiff claimed the Authentic Brands deal was made to prop up the stock price and was actually not as good …