According to the Complaint, Sundial Growers Inc. purports to produce and market craft pioneering cannabis brands to “Heal, Help and Play.” Sundial operates five facilities, including two facilities in Alberta, Canada and three in the United Kingdom, and as of August 2019, was building a third Canadian facility in British Columbia.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) as a result, Defendants’ statements about Sundial’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 20, 2019, the Court issued an Order consolidating cases and appointing Co-Lead Plaintiffs and Counsel. Co-Lead Plaintiffs filed an amended consolidated Complaint on February 18, 2020. On April 30, Co-Lead Plaintiffs filed a second amended consolidated Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on May 27. On November 12, three of the individual Defendants were voluntarily dismissed from the case. On March 30, 2021, the Court issued an Order denying Defendants' Motion to Dismiss, except as to one claim which was deemed abandoned and therefore dismissed.
On August 27, 2021, the parties notified the Court that they had reached an agreement in principle to settle the case. The parties entered into a Stipulation and Agreement of Settlement on December 2. On June 23, 2022, the Court granted preliminary approval of the Settlement. On October 5, the Court granted final approval of the Settlement and entered Final Judgment. The Court approved an award of Attorneys’ Fees and Expenses on October 6.