Hexo Corp’s (TSX: HEXO) (NYSE: HEXO) management is taking a breathe of fresh air this morning, following the complete dismissal of a federal US securities class action lawsuit filed against the firm. The company this morning announced that the US District Court for the Southern District of New York had officially dismissed the lawsuit.
The dismissal formally came on March 8, when a 60 page opinion was filed, indicating that the Southern District of New York had agreed to Hexo’s motion to dismiss in its entirety. The opinion more specifically was in relation to a class action lawsuit that claimed Hexo and certain of its current and former officers made material misstatements and omitted material information in prior disclosures to investors.
Specifically, the suit referred to estimated sales revenues during the fourth quarter of 2019 and all of fiscal 2020, supply agreements that were in place with the Province of Quebec, and operations acquired from Newstrike Resources among other claims. However, in its opinion, the court stated that the plaintiffs had “failed to allege actionable misstatements or omissions.”
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Plaintiffs in the class action still have the right to appeal the decision, however it is unclear at this time if they intend to do so.
Hexo Corp last traded at $8.79 on the TSX.
Information for this briefing was found via Sedar and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
