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 business Hexo Corp. lied and withheld info from investors prior to losing them hundreds of millions of dollars, saying the shareholders did not show that the business had expertise of reduce-than-anticipated demand.

U.S. District Judge Naomi Reice Buchwald stated in Monday’s opinion that lead plaintiffs John B. Medley and Timothy Sweeney did not appropriately assistance their Securities Act and Exchange Act claims against the Quebec-primarily based cannabis supplier, person directors and officers of the business, and a dozen underwriters of its initial public providing.

“Plaintiffs have not alleged information detailing…

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