Hexo Corp. said it won the dismissal of a securities class action lawsuit that had been pending before the Quebec Superior Court against the Canadian cannabis producer and a former CEO.
In the suit, filed in Quebec on Nov. 19, 2019, certain primary market and secondary market purchasers of the company’s stock had alleged that Hexo misled investors regarding a wholesale purchase agreement with the province-owned wholesaler Société québécoise du cannabis.
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The court disagreed with the plaintiff’s argument.
The suit also delved into disclosure obligations and Hexo’s purchase of competing producer Newstrike on May 24, 2019.
Sebastien St. Louis, a former Hexo chief executive officer, was the former CEO named in the suit.
“We’re very satisfied with the Court’s detailed opinion, which dismissed the Plaintiff’s claims and supports HEXO’s position,” current CEO Charlie Bowman said in a statement.
“This favourable ruling is important for our company
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