Tilray Under Investigation By Ex Louisiana AG Charles Foti And KSF

Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC, announced that KSF has commenced an investigation into Tilray, Inc. TLRY.

In January 2019, the company entered into a significant marketing agreement with Authentic Brands Group LLC in which, among other things, the company would expand globally as ABG’s preferred cannabis supplier, receiving up to almost half of the net revenue and a guaranteed $10 million annual payment. On March 2, 2020, the company disclosed a $321.2 million net loss for the year, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018, and “non-cash charges of $112.1 million related to impairment of the Authentic Brands Group LLC agreement as well as $68.6 million in inventory reserves.”

Thereafter, the company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the class period, violating federal securities laws. Recently, the court presiding over the case denied the company’s motion to dismiss in part, allowing the case to move forward.

KSF’s investigation is focusing on whether Tilray’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.

Photo by Jeff W on Unsplash

Related News

'I Think Anything Can Bounce In That Business,' Jim Cramer Says About This Casino Stock

Tilray Stock Soars Then Returns To Earth On Biden's Cannabis Pardon News, This Analyst Remains Neutral

Canopy Growth, Tilray Pull Back After Enjoying Surge Following Biden's Pardon: What's Up With These Cannabis Stocks?

Market News and Data brought to you by Benzinga APIs
Posted In: CannabisNewsPenny StocksSmall CapMarketsAuthentic Brands Group LLCCharles C. Foti Jr.Kahn Swick & Foti LLC
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Top Cannabis Event In New Jersey

Join the Benzinga Cannabis Market Spotlight in New Jersey on June 17th! Grow your business, raise money and capitalize on the booming NJ recreational market. Don’t miss this must-attend event in New Brunswick. Secure your tickets now. Very few spots are left. Use the code "JAVIER20" for 20% off!