According to the Complaint, Namaste Technologies Inc. ("Namaste") operates as a cannabis e-commerce company with e-commerce sites in 26 countries.
Plaintiff's law firm issued a press release on October 6, 2018, announcing the lawsuit. According to the lawsuit, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Namaste had sold its wholly-owned U.S. subsidiary to Namaste executives; (2) consequently, Namaste did not sell its U.S. subsidiary in an arm’s length transaction; and (3) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
This case was voluntarily dismissed on December 26, 2018. A related case continues under Docket 18-CV-10830 in the Southern District of New York.
On January 22, 2019, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on April 5. On July 29, the parties informed the Court that they had reached a Settlement in principle. On September 23, the parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order preliminarily approving the Settlement on October 25. On March 11, 2020, the Court granted final approval of the Settlement and entered Final Judgment. On January 29, 2021, the Court issued an Order granting authorization to distribute the net Settlement fund.