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.
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