Tilray, Inc. (TLRY) Accused of Misleading Shareholders
According to the complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between January 15, 2019 and March 2, 2020, Tilray, Inc. (TLRY) announced its entry into a marketing and revenue sharing agreement with Authentic Brands Group (“ABG”), touting that “through this agreement, Tilray and ABG join forces at the intersection of science and brand to connect consumers with innovative health and wellness products.” Tilray maintained these positive statements throughout the relevant period, assuring investors that the alliance “will complement or augment existing business.” Despite auspicious projections for the agreement, on March 2, 2020, Tilray released its financial results for the fourth quarter and full year 2019, reporting a net loss for the year of $321.2 million and disclosing that “the Company recorded non-cash charges of $112.1 million related to impairment of the Authentic Brands Group LLC (‘ABG’) agreement as well as $68.6 million in inventory reserves.” Since this news, Tilray’s stock price has precipitously fallen 67% from its closing price of $15.35 per share on March, 2, 2020, currently trading at $5 per share.
