Tilray Brands is being sued by an investor who alleges the company’s former leadership led investors astray.
The shareholder specifically alleges that ex-CEO Brendan Kennedy and other former Tilray board members misled investors and that the current board failed to take appropriate action in response.
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The shareholder’s derivative complaint against the Canada-based cannabis, alcohol and pharmaceutical distribution company was filed March 1 in the U.S. District Court for the Southern District of New York.
The plaintiff – Michael Hudson, a Tilray shareholder since 2018 – seeks a trial by jury.
Tilray did not immediately respond to an MJBizDaily request for comment.
According to the statement of claim, Tilray’s gross margin declined from 55% in the first quarter of 2018 to 31% in the third quarter.
To mollify shareholders, “the former directors deceived stockholders by both overstating inventory and understating labor costs (both inputs to cost of
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