- Investors are suing Sundial Growers, Inc. over exportation claims made last January.
- The investing groups have invested over $4 million into Sundial.
- The lawsuit is seeking monetary charges with the hopes of achieving at least $4 million in return.
A canadian cannabis producer is being sued by a group of investors who claim that the company misled them by saying it was acquiring an agricultural company in the United Kingdom and could “almost immediately” begin exporting CBD and hemp products to the European Union (EU).
A federal lawsuit was filed in New York on Thursday and alleges that the accused company, Sundial Growers, Inc., made “grossly exaggerated and materially misleading” representations in January of last year.
The investment groups filing the lawsuit against Sundial claim that the company had stated that their acquired company, Bridge Farm, were in possession of a hemp cultivation license that would enable them to be the “first to market.” As a result, this would give them a “stronghold in Europe’s nascent cannabis market.”
The investors had put more than $4 million into Sundial Growers before its initial public offering (IPO). Later on is when they were informed that Bridge Farm did not have a cultivation license and could not cultivate or export hemp and CBD products to the EU.
The suit filed is seeking monetary damages as determined by a jury, “but no less than $4 million.”
Sundial is listed on the Nasdaq as SNDL.