Canadian cannabis producer escapes investors’ lawsuit over export claims

A Canadian cannabis company has been cleared of wrongdoing in a lawsuit from angry investors who said the company misled them about plans to export hemp and CBD to the European Union.

Sundial Growers, a marijuana producer in Calgary, Alberta, was accused of being dishonest when it said it was acquiring a UK company that could “almost immediately” start exporting hemp and CBD products to the European Union.

But the plan was beset by delays, and Sundial sold the UK company (Bridge Farm) in 2020.

A group of investors sued Sundial in New York, seeking more than $7 million.

But a federal judge dismissed the case last week, saying that Sundial’s discussions about exporting hemp and CBD into Europe were “accompanied by meaningful cautionary language” and that Sundial isn’t responsible for the investors’ losses.

Law360 first reported the dismissal.

Sundial trades on the Nasdaq as SNDL.