Tilray hit by $300 million lawsuit over scheme to bankrupt acquisition target
Mark P, 11 December 2019
Cannabis stocks have had a history of being rife with scandals and potential wrongdoings. While it’s unfortunate that the industry has garnered such a reputation, for the most part, this perception has died down a bit in 2019. However, from time to time, a well-known cannabis company will be implicated in something illegal or against the law. That’s what happened today with Tilray (NASDAQ: TLRY), which was hit with a $300 million lawsuit from an acquisition target that claimed Tilray was trying to make them go bankrupt.
While it didn’t make headlines in the financial press, Bloomberg quietly mentioned that Tilray had been hit with a hefty lawsuit from a soap company called Trimax, which argued that the pot company had been trying to bankrupt one of its subsidiaries in order to make it easy to buy them out. Specifically, Trimax claims that Tilray wanted to buy its line of CBD products at a discount.gh cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
