Photo: Dmytro Tyshchenko/Shutterstock Cannabis Securities Action Found Half Baked
Justice Barry Ostrager of the New York County Supreme Court granted a motion to dismiss a proposed securities class action against Sundial Growers, Inc. (Sundial), a Canadian cannabis producer. This decision provides the first glimpse at how the recent spate of cannabis securities litigation may play out, writes Chris Gismondi and Caryn Schechtman.
August 27, 2020 at 01:00 PM
8 minute read
In reporting on the recent trend in securities litigation brought against corporations that primarily generate revenue from cannabis, on May 15, we noted that "it remains to be seen how the courts will analyze" such allegations. Later that day, the wait was over. Justice Barry Ostrager of the New York County Supreme Court granted a motion to dismiss a proposed securities class action against Sundial Growers, Inc. (Sundial), a Canadian cannabis producer. This decision provides the first glimpse at how the recent spate of cannabis securities litigation may play out.
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