5 Cannabis Companies Facing Heated Class-Action Lawsuits

TheOfficial_CWRVoice

Combined company assets are in the billions. It seems that the green rush may have hit a few bumps in the road for some of the biggest cannabis companies out there. In recent months, several companies have been hit with class-action lawsuits over a range of allegations, from mislabeling products to false advertising. So, let’s take a look at five of the most notable cases as of 2022:

1. Aurora Cannabis Inc. (NASDAQ: ACB): The Canadian cannabis giant is facing a class-action lawsuit alleging that the company falsely claimed its products were organic. The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses Aurora of deceiving customers into paying more for products that were not truly organic. I guess you could say Aurora’s claims went up in smoke!
2. Curaleaf Holdings Inc. (OTCQX: CURLF, TSX: CURA): Curaleaf, one of the largest cannabis companies in the U.S., is facing a class-action lawsuit alleging that the company mislabeled the CBD content of its products. The lawsuit, filed in the U.S. District Court for the Southern District of Florida, accuses Curaleaf of overstating the amount of CBD in its products, which could have misled customers into buying products that didn’t contain as much CBD as they thought. Looks like Curaleaf got caught in a bit of a high-stakes game of CBD roulette!
3. Canopy Growth Corporation (NASDAQ: CGC): Canopy Growth, another Canadian cannabis giant, is facing a class-action lawsuit alleging that the company made false and misleading statements to investors. The lawsuit, filed in the U.S. District Court for the Eastern District of New York, accuses Canopy Growth of exaggerating its production capacity and failing to disclose certain problems with its supply chain. I guess you could say Canopy Growth’s business plan went up in smoke!
4. Tilray Inc.(NASDAQ: TLRY): Tilray, a Canadian cannabis company that recently merged with Aphria Inc., is facing a class-action lawsuit alleging that the company made false and misleading statements to investors. The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses Tilray of exaggerating its potential profitability and failing to disclose certain risks associated with its business. Looks like Tilray may have been a bit too optimistic about the green in their future!
5. Hexo Corp. (Acquired by Tilray in 2023): Hexo, a Canadian cannabis company, is facing a class-action lawsuit alleging that the company made false and misleading statements to investors. The lawsuit, filed in the Quebec Superior Court, accuses Hexo of overstating its production capacity and failing to disclose certain problems with its supply chain. I guess you could say Hexo got a little too high on its own supply!

While these lawsuits may be no laughing matter for the companies involved, we can’t help but inject a bit of humor into the situation. In all seriousness, it’s important for companies in the cannabis industry to maintain transparency and honesty with their workers, customers and the public. As the industry continues to grow and evolve, we can only hope that these types of issues will become less common, but rumor has it theres more to come… Sources: