Tilray Brands, based in New York (Nasdaq : TLRY ) (TSX : TLRY), celebrated on Wednesday the dismissal of an $8 million lawsuit brought by shareholders against the company and its subsidiary Hexo Corp. after a Massachusetts Superior Court Judge ruled the plaintiffs had not suffered any financial losses.
Clement Italume was the plaintiff in this lawsuit. He argued that Tilray, Hexo, and Hexo had “failed properly to disclose and notify investors of HEXO’s corporate action in December 2022, and Tilray’s acquisition of HEXO, in June 2023”, Tilray stated in a release.
Italume alleged that a lack of notice had “caused financial losses to shareholders”, and according to a release, the case was first ordered into arbitration.
This week the judge who presided over the case ruled That Italume did not provide any concrete evidence that the reverse split through which Tilray acquired Hexo caused financial harm, nor that Tilray had failed to notify its shareholders properly of the deal.
Tilray pointed out that Italume has not indicated whether they will appeal this ruling.
Tilray needed to win or, at the very least, get some financial relief. This month, the company issued 23 million additional shares to raise $14,6 million in debt repayment. In February, Tilray settled two lawsuits in Canada for C$30,000,000, which is roughly US$21,000,000. Tilray also reported an 85 million dollar net loss in the most recent quarter.