Sundial Growers Issues Response To Class Action Lawsuit

Sundial Growers Inc (NASDAQ: SNDL) issued a response this morning in relation to a lawsuit filed against the firm in the US on Monday. The class action lawsuit is alleging that Sundial had lied to investors within its registration statement, by making false or misleading statements in relation to a supply agreement with that of Zenabis Global (TSX: ZENA).

In particular, the lawsuit is connection with reporting conducted by MarketWatch writer Max A. Cherney, who published a report on August 20 indicating that Sundial had provided Zenabis with 554 kilograms of poor quality product that was ultimately returned by Zenabis. The product reportedly had bits of rubber and mold contained within, along with other non cannabis material.

Within today’s response, Sundial did not deny that product had been returned. Rather, they indicated that the amount returned was “a fraction of the 554 kilograms erroneously quoted in the article.” Sundial then went further, stating, “The return represented a minimal percentage of our total production to date, had no impact on our second quarter financial results and is expected to have a negligible impact on our third quarter earnings.”

We strongly believe that Sundial did not mislead investors and disclosed all material information to investors in our IPO. We are therefore confident that the class action lawsuits filed against Sundial are completely without merit and intend to vigorously defend our company in these matters.

Torsten Kuenzlen, CEO of Sundial

Despite Sundial’s statements, Zenabis’ own filings indicate that the firm had returned a half ton of bad product to a “third party” and that it had since terminated the supply agreement as a result as per the MarketWatch article. Zenabis, for it’s part, does not publicly disclose exactly whom the third party is.

Sundial investors have been on a wild ride since the firms initial IPO this past summer at $13.00, with the issuer closing yesterdays session at a price of $4.40.


Information for this briefing was found via Sedar and Sundial Growers. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Zenabis Global Converts Debt Below All Time Low At $0.04794 Per Share

Conversion prices for Zenabis Global (TSX: ZENA) debt just keeps getting lower. The company issued...

Saturday, October 31, 2020, 12:40:19 PM

Hexo Corp Closes Acquisition Of Zenabis Global

HEXO Corp. (TSX: HEXO) announced today the closing of the acquisition of all issued and...

Tuesday, June 1, 2021, 09:39:10 AM

Zenabis Manages To Push Off Portion of June 2020 Debt Maturity

Zenabis Global (TSX: ZENA) may have pushed off insolvency a little longer this morning. The...

Thursday, April 23, 2020, 08:47:04 AM

Zenabis Amends Q1 Financials, Loss Increases To $7.7 Million From $1.5 Million

Zenabis Global (TSX: ZENA) filed amended financial statements Friday night after 10:30 PM, and issued...

Saturday, June 13, 2020, 04:16:37 PM

Zenabis Announces Heavily Dilutive Financing For $15.0 Million

Zenabis Global (TSX: ZENA) announced this evening that it intends to continue to implode its...

Thursday, June 18, 2020, 06:49:49 PM