Hexo has won a complete dismissal of the putative securities class action lawsuit pending before the Québec Superior Court against the Company and its former Chief Executive Officer, filed on November 19, 2019, on behalf of certain primary market and secondary market purchasers of securities of the Company.
As previously disclosed, HEXO and its former Chief Executive Officer (“Defendants”) were named in a shareholder class action lawsuit filed in the province of Québec. The lawsuit asserted causes of action for misrepresentations and breaches of disclosure obligations under the Québec Securities Act and the Civil Code of Québec in connection with certain statements contained in HEXO’s prospectus, public documents, and public oral statements between April 11, 2018, and March 27, 2020.
In a 48-page opinion dated January 23, 2023, the Superior Court of Québec dismissed the plaintiff’s amended motion in its entirety, with costs. The Court agreed with the Defendants that there was “no reasonable possibility” that the secondary market claim filed under the Québec Securities Act had a reasonable chance of success or that the plaintiff had demonstrated an arguable case for a primary market class action or a civil liability class action “for misrepresentation under the general principles of fault in the civil law.” The plaintiff has a right to appeal.
“We’re very satisfied with the Court’s detailed opinion, which dismissed the plaintiff’s claims and supports HEXO’s position,” said Charlie Bowman, CEO, and President of HEXO. “This favorable ruling is important for our company as we continue to build investor confidence and look to position HEXO for long-term financial success.”
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