A new lawsuit alleges insider trading at #cannabis pubco, Tilray.
The suit claims that CEO Brendan Kennedy, former Chief Financial Officer Mark Castaneda and several board members – breached their fiduciary duties regarding a revenue-sharing agreement between Tilray and lifestyle brand portfolio Authentic Brands Group (ABG) and engaged in insider trading surrounding that deal.
Accordingly, the complaint alleges Tilray shares sold by the defendants that year were offloaded at “artificially inflated prices” with insider information about the deal.
Kennedy sold more than $22.9 million worth of Tilray shares in 2019, the complaint shows, and Castaneda sold shares worth more than $2.6 million.
The complaint claims Tilray’s market capitalization has suffered and alleges the defendant’s conduct “irreparably damaged Tilray’s corporate image and goodwill.”
It seeks damages against the defendants, an order requiring them to forfeit the proceeds from their 2019 stock sales and reform of Tilray’s corporate governance.
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