Tilray Successfully Settles Canadian Class Action Lawsuit

Tilray Brands, Inc. (NASDAQ:TLRY) recently announced the successful settlement of the Aphria Canadian Class Action and related individual actions. This settlement marks a significant resolution for the company and its subsidiary, Aphria, Inc.

The class action, which originated in February 2019 and was amended in September 2022, alleged wrongdoing related to Aphria’s acquisition of Nuuvera Inc. and LATAM Holdings Inc. Specifically, it was claimed that the value of the acquired assets was misrepresented, leading to personal benefits to insiders at Aphria at the expense of investors. Tilray and the individual defendants denied these allegations and prepared to defend themselves in a trial scheduled for January 2025.

On February 5, 2025, Tilray and the individual defendants came to an agreement with the class plaintiff to settle the Aphria Canadian Class Action. The settlement involves the payment of CAD $30 million, or approximately US $21 million, by all defendants. This settlement amount also covers the dismissal of four individual Canadian lawsuits related to the same allegations. Importantly, the settlement does not constitute an admission of liability or wrongdoing by Aphria or the other defendants.

The settlement amount will be funded primarily by the outstanding balance under Aphria’s D&O Insurance Policy and by the individual defendants. Aphria will cover the remaining portion of approximately CAD $8.5 million (or approximately US $5.9 million), which is fully accrued on its balance sheet. This settlement is subject to Court approval, with a hearing scheduled for March 2025.

In accordance with forward-looking statements under Canadian securities laws and U.S. securities regulations, Tilray highlighted the funding of the settlement agreement and assured that the settlement amount will not negatively impact earnings. The company reminded investors to consider various risks and uncertainties that could affect future outcomes and noted its commitment to updating information as necessary to comply with securities laws.

For more information on Tilray’s financial activities and related news, interested parties can refer to the company’s filings with the Securities and Exchange Commission.

This settlement signifies a significant development for Tilray and provides closure to a longstanding legal matter for the company and its subsidiary.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Tilray’s 8K filing here.

About Tilray

Tilray, Inc engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc is headquartered in Canada.