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A New York federal judge has thrown out a securities suit alleging cannabis company Tilray Inc. and its CEO misled investors about the value of a partnership, admitting the court had made an error in law and was "too lenient" on the pleadings when it partially denied the company's prior bid to dismiss. In an order filed Monday, U.S. District Judge Paul A. Crotty granted Tilray and CEO Brendan Kennedy's motion for reconsideration of a September 2022 order denying the dismissal of Securities Exchange Act claims brought by investors led by Ganesh Kasilingam. While Judge Crotty declined to address the bulk of Tilray's arguments, he agreed that he had overlooked Second Circuit precedent when he found that Kennedy's stock trades created an inference that Kennedy was aware of the alleged deception and benefited from that deception. The investors had alleged Kennedy's sale of stock during the period in which he was allegedly deceiving investors was an indication of his motives, and in the prior dismissal order, Judge Crotty had agreed, finding that the plaintiffs' inferences outweighed Kennedy's argument that the stocks were sold in pursuit of an above-board, predetermined plan. Read more at: https://www.law360.com/cannabis/articles/1713491/tilray-gets-securities-suit-tossed-on-reconsideration?copied=1
