- HEXO Corp. (HEXO) has won a dismissal of a New York state court shareholder class action against it
- The suits allege that HEXO made material misstatements and omitted material information in prior disclosures to investors
- Following oral arguments on June 3, 2021, Justice Andrew Borrok granted HEXO’s motion to dismiss the state court securities class action
- The plaintiffs have a right to appeal and litigation in Quebec is ongoing
- HEXO is an award-winning licensed producer of innovative products for the global cannabis market
- HEXO Corp. (HEXO) closed the day down 0.71 per cent trading at $8.38 per share
HEXO Corp. (HEXO) has won a dismissal of a New York state court shareholder class action against it.
The company and certain current and former officers and directors were named in the lawsuits filed in the Southern District of New York, the Commercial Division of the Supreme Court for the State of New York, as well as in the province of Quebec.
The suits allege that HEXO made material misstatements and omitted material information in prior disclosures to investors regarding:
- Estimated sales revenues during Q4 2019 and fiscal year 2020
- Its supply agreement with the SQDC
- The facilities acquired from Newstrike
The Southern District of New York previously dismissed the U.S. federal securities class action on March 8, 2021. No appeal was taken.
Following oral arguments on June 3, 2021, Justice Andrew Borrok of the Commercial Division of the Supreme Court of the State of New York granted HEXO’s motion to dismiss the state court securities class action.
The court agreed with HEXO that the plaintiffs “fail[ed] to identify any facts which were known or should be known which rendered the offering documents materially misleading at the time they were issued.”
The plaintiffs have a right to appeal.
“We are pleased that a second U.S. court has now determined that the U.S. securities class action claims against HEXO are without merit,” said HEXO General Counsel Roch Vaillancourt. “While the Quebec litigation remains pending, today’s ruling should further help reduce our litigation burden as we continue closing and integrating our recent acquisitions to pursue our goal of becoming a top-three global cannabis products company.”
HEXO is an award-winning licensed producer of innovative products for the global cannabis market.
HEXO Corp. (HEXO) closed the day down 0.71 per cent trading at $8.38 per share.