Aphria Agrees to $30 Million Settlement in Shareholder Lawsuit
Aphria Inc. has agreed to a $30 million settlement to resolve allegations of misrepresentation in its 2018 acquisitions, pending court approval
Key Points
- 1Aphria Inc. settles shareholder lawsuit for $30 million
- 2The lawsuit involved alleged misrepresentations in 2018 acquisitions
- 3Settlement is not an admission of liability by Aphria
- 4Tilray, Aphria's parent company, ensures no negative earnings impact
- 5Court approval for the settlement is expected on March 26
Aphria Inc., a prominent cannabis company, has reached a $30 million settlement to resolve a class-action lawsuit filed by shareholders. The lawsuit accused Aphria of misrepresenting the value of its acquisitions in 2018, particularly involving Nuuvera Inc. and LATAM Holdings Inc. The settlement is not an admission of wrongdoing by the company or its executives, who have denied any allegations of misconduct
The legal dispute centered on claims that Aphria's public disclosures led to a significant drop in its share price, which shareholders argued was a correction of the alleged misrepresentations. Aphria, which was acquired by Tilray Inc. in 2021, will cover the settlement cost primarily through an insurance policy and contributions from individual defendants, with Aphria itself funding approximately $8.5 million of the unpaid portion
Tilray has assured that the settlement will not negatively impact Aphria's financial earnings, as the amount is already accounted for on its balance sheet. The agreement awaits approval from the Ontario Superior Court, with a hearing scheduled for March 26. This development marks a significant step in addressing shareholder concerns and moving forward from the controversies surrounding Aphria's past acquisitions