Suit claims Sundial failed to disclose mold and rubber contaminated pot shipment prior to going public.
A U.S.-based law firm has filed a class action lawsuit against Calgary-based Sundial Growers Inc. on behalf of investors who purchased shares during the licensed cannabis producer’s initial public offering (IPO) on the Nasdaq this summer for allegedly failing to disclose some key pieces of information about supply problems and quality control issues.
Yimin Huang is listed as the plaintiff in the Rosen’s class action lawsuit. It doesn’t say how much the investor lost or what he’s seeking in damages.
“Everyone we represent, we represent other investors who’ve already contacted us, you know, they’ve lost substantial amounts,” said Phillip Kim, lawyer with the Rosen Law Firm.
The court documents allege Sundial’s registration statement and prospectus, which Kim says is like the company’s sales pitch or brochure to investors, contained inaccurate information.
The registration statement and prospectus are filed with the U.S. Securities and Exchange Commission prior to a public offering and cannot, according to Kim, contain any material misstatement or omission.
The lawsuit says these filings failed to disclose that one of Sundial’s customers, Zenabis Global Inc., returned 554 kilograms of cannabis because it contained mold and parts of rubber gloves.
Colleen Underwood · CBC News
Read the whole article here: www.cbc.ca/news/canada/calgary/sundial-growers-class-action-lawsuit-1.5309947