Tilray is based in Toronto, Canada. The Company engages in the research, cultivation, processing, and distribution of medical cannabis. On January 15, 2019, the day the Class Period begins, Tilray announced that it had entered into a long-term revenue sharing agreement with Authentic Brands Group (“ABG”) to market and distribute a portfolio of consumer cannabis products.
According to the lawsuit, throughout the Class Period, Tilray made false and/or misleading statements about the Company’s business, operational, and compliance policies. Specifically, (i) the purported advantages of the ABG Agreement were significantly overstated; and (ii) the underperformance of the ABG Agreement would foreseeably have a significant impact on the Company’s financial results.
On March 2, 2020, Tilray issued a press release announcing the Company’s financial results for the fourth quarter and full year 2019. Among other results, Tilray reported a net loss for the year of $321.2 million, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018. In addition, Tilray disclosed that “the Company recorded non-cash charges of $112.1 million related to impairment of the [ABG] agreement as well as $68.6 million in inventory reserves.”
On this news, Tilray’s stock price fell $2.33 per share – 15.18% – to close at $13.02 per share on March 3, 2020.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What You Can Do” data-reactid=”24″>What You Can Do
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you purchased Tilray securities between January 15, 2019 and March 2, 2020, inclusive, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or [email protected]. The deadline for lead plaintiff motions is May 5, 2020.” data-reactid=”25″>If you purchased Tilray securities between January 15, 2019 and March 2, 2020, inclusive, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or [email protected]. The deadline for lead plaintiff motions is May 5, 2020.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About Scott+Scott Attorneys at Law LLP” data-reactid=”26″>About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View source version on businesswire.com: https://www.businesswire.com/news/home/20200310005855/en/” data-reactid=”29″>View source version on businesswire.com: https://www.businesswire.com/news/home/20200310005855/en/
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Contacts” data-reactid=”30″>Contacts
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Rhiana Swartz
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169-1820
(844) 818-6980
[email protected]” data-reactid=”31″>Rhiana Swartz
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169-1820
(844) 818-6980
[email protected]
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