Skadden secured the dismissal with prejudice of all claims against Canopy Growth Corporation and certain of its current and former officers in a putative securities fraud class action alleging Canopy misled investors regarding the success of its former sports drink subsidiary BioSteel. The plaintiff claimed Canopy made materially false statements about BioSteel’s revenue and business performance and omitted certain adverse facts about excess inventory and distribution issues. Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York rejected the claims, holding that the complaint failed to adequately allege a strong inference of scienter.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates