A class-action lawsuit against Sundial Growers Inc. in Canada claims the company’s U.S. stock prices were affected by an unreported incident where $1.9 million worth of cannabis was returned to the company due to poor quality.
Canadian licensed cannabis company Sundial Growers Inc. is being sued in the U.S. for allegedly failing to disclose that a customer returned $1.9 million — about a half-ton — worth of cannabis, according to a MarketWatch report. Zenabis Global, the company that reportedly sent the cannabis back to Sundial and terminated its agreement with the firm, claims that the cannabis was of poor quality and contained bits of rubber gloves and visible mold.
The lawsuit is a class action and alleged that Sundial “made false and misleading statements” about its product. The lawsuit claims that Sundial “failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc,” and that the company’s statements about its “businesses, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.”