US court dismisses Tilray/HEXO shareholder lawsuit
Tilray Brands Inc. and its subsidiary, HEXO Corporation, have successfully dismissed a lawsuit from an investor in the US.
The lawsuit, Clement Italume vs. Robinhood Markets Inc., Robinhood Financial LLC, HEXO and Tilray, came from an investor who claimed that the two companies failed to properly disclose and notify shareholders of HEXO’s corporate actions in December 2022 and Tilray’s acquisition of HEXO in June 2023. The Plaintiff sought damages totalling approximately US$8 million.
In an announcement on March 26, the Massachusetts Superior Court, Suffolk County, granted Tilray’s and HEXO’s summary judgment motion in full, dismissing Clement Italume’s claims. The Court previously ruled that the Plaintiff’s claims against the Robinhood defendants are subject to arbitration.
In its Order, the Court rejected the plaintiff’s claims, finding that the plaintiff did not cite sufficient evidence that the identified corporate actions caused financial loss or that HEXO and Tilray failed to properly notify shareholders of Tilray’s acquisition. The court further held that the plaintiff was unable to establish credible damages arising from his claims. It is uncertain if the plaintiff will appeal the ruling of the Massachusetts Superior Court.
Also, on March 25, 2025, Tilray Brands, Inc. received written notice from the Nasdaq Listing Qualifications Department, notifying the company that it is not in compliance with the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Global Select Market.
The Notice does not impact the listing of the Company’s common stock on the Nasdaq Global Select Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company’s common stock must be at least $1.00 per share for a minimum of ten consecutive business days before September 21, 2025.
Tilray Brands Inc. and its subsidiary, HEXO Corporation, have successfully dismissed a lawsuit from an investor in the US.
The lawsuit, Clement Italume vs. Robinhood Markets Inc., Robinhood Financial LLC, HEXO and Tilray, came from an investor who claimed that the two companies failed to properly disclose and notify shareholders of HEXO’s corporate actions in December 2022 and Tilray’s acquisition of HEXO in June 2023. The Plaintiff sought damages totalling approximately US$8 million.
In an announcement on March 26, the Massachusetts Superior Court, Suffolk County, granted Tilray’s and HEXO’s summary judgment motion in full, dismissing Clement Italume’s claims. The Court previously ruled that the Plaintiff’s claims against the Robinhood defendants are subject to arbitration.
In its Order, the Court rejected the plaintiff’s claims, finding that the plaintiff did not cite sufficient evidence that the identified corporate actions caused financial loss or that HEXO and Tilray failed to properly notify shareholders of Tilray’s acquisition. The court further held that the plaintiff was unable to establish credible damages arising from his claims. It is uncertain if the plaintiff will appeal the ruling of the Massachusetts Superior Court.
Also, on March 25, 2025, Tilray Brands, Inc. received written notice from the Nasdaq Listing Qualifications Department, notifying the company that it is not in compliance with the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Global Select Market.
The Notice does not impact the listing of the Company’s common stock on the Nasdaq Global Select Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company’s common stock must be at least $1.00 per share for a minimum of ten consecutive business days before September 21, 2025.