Canadian cannabis giant Tilray, Inc. TLRY, which closed its acquisition of rival Aphria, Inc. (APHA) in 2021, could face a lawsuit brought by former Aphria shareholders.
Background:
In 2021, after months of negotiations, Tilray and Aphria merged creating a company with a combined market cap of $3.3 billion at that time.
The two Canadian cannabis giants had been in talks since December 2020 to create a new enterprise, led by Aphria’s current CEO Irwin Simon.
Under the deal, each Aphria shareholder received 0.8381 of a Tilray share for each Aphria common share held on April 30, 2021.
What Happened?
Apparently, the former shareholders of the company accuse Tilray of misleading investors about some assets it acquired, reported Bloomberg Law.
Recently, a judge in the US District Court for the Southern District of New York ruled that the shareholders can represent a class.
Moreover, Judge George Daniels said that stockholder allegations that they relied on Aphria misrepresentations "are capable of common proof through a fraud-on-the-market theory."
Nevertheless, Seeking Alpha's Quant Rating views Tilray as a hold with strong grades for valuation and growth.
Photo: Courtesy Of Sasun Bughdaryan On Unsplash
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