Connect with us

CBD News

Sundial Growers Face Class Action Lawsuit in US Over Cannabis Supply Issue

TC Farrand



- Ad -

Canadian Cannabis Company Sundial Growers Inc. is Facing a Class-Action Lawsuit in the United States.

According to the press release, Bernstein Liebhard, LLP, a investor rights firm that has national acclaim, announced the securities fraud class-action suit. The suit has been filed on behalf of Sundial Growers shareholders, who allege that Sundial Growers provided them with materially misleading information.

The press release also indicates that Zenabis had to return product to Sundial, in the amount of approximately half a ton. In addition, Zenabis terminated its agreement to purchase weed product from an unnamed third party.

Further, the allegations of the class action suit are that Sundial Growers:

“Made false and misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) as a result, defendants statements about Sundials business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.”

According to CBC, a number of defendants have been named in the suit, such as Sundial’s CEO, CFO, and the company’s underwriters. The news source also reached out to Sundial for comment, I which it responded:

“We are aware of the complaints that have been filed. ​It is our policy not to comment on active litigation; however, we believe that the claims are without merit and the company intends to vigorously defend itself. Sundial remains focused on what has made us successful: the growth of our business through a commitment to producing safe, innovative and high-quality products.”

TC Farrand lives in the hemp haven state Colorado and is a writer who quite literally loves to write. Boasting nearly 20 years of experience as an educational and professional content creator, with a vast array of topics and interests in many subjects, TC’s CBD-related research skills are truly superior. By taking the utmost pride in researching medical literature to enhance his own knowledge, his cannabis insights are very welcomed and happy to have his works on full display here at TOC.

Continue Reading

Ultimate CBD Guide


ultimate-cbd-products-company-guidepopular-cbd-health-benefits best-cannabidiol-guide-resources hemp guide

TimesofCBD is the most active daily CBD news publication featuring the latest cannabis industry stories and marijuana market trends. As the leader in CBD-centric content curation, we invite all readers to come for the headlines and stay for the insights. Quality is the top priority when presenting user guides, analyzing product reviews and reporting fact-checked news announcements. All information is for educational and informational purposes only. Disclaimer.

Got news? Email

Copyright © 2020 | Latest CBD News, Cannabis Guides and Marijuana Trends
Note: Always seek real additional medical advice and consultation with a professional healthcare practitioner before considering any CBD. No statements found on this website have underwent Food and Drug Administration evaluation. The efficacy of any products or claims made have never been approved by the FDA either. No products shall ever be intended to diagnose, treat or cure any disease or prevent any ailment.