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Oct. 9, 2019, 8:14 a.m. EDT

Sundial Growers says class-action lawsuits alleging it failed to disclose return of product are 'baseless'

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By Ciara Linnane

Sundial Growers Inc. /zigman2/quotes/213489825/composite SNDL +0.29% said Wednesday that class-action lawsuits alleging it failed to disclose that a large amount of cannabis had been returned by a client because of contamination are without merit and said it would vigorously defend itself against them. The Canadian cannabis company said the suits stem from a "single online article, which erroneously described a since-resolved commercial dispute." The article, which was cited in the suits, was a report by MarketWatch in August that said Zenabis Global Inc. /zigman2/quotes/203772078/delayed CA:ZENA 0.00% returned a half-ton of Sundial cannabis because it contained visible mold, parts of rubber gloves and other non-cannabis material, citing people familiar with the matter. "All of our customer agreements include provisions to replace or return product under certain conditions," Sundial said in a statement. "The amount of product returned was a fraction of the 554 kilograms erroneously quoted in the article." Shares were not yet active in premarket trading but have fallen 43% in the past month, while the ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ +1.22% has lost 20% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.34% has dipped by about 3%.

/zigman2/quotes/213489825/composite
US : U.S.: Nasdaq
$ 0.84
+0.0024 +0.29%
Volume: 416,629
July 14, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$90.18 million
Rev. per Employee
N/A
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/zigman2/quotes/203772078/delayed
CA : Canada: Toronto
$ 0.08
0.00 0.00%
Volume: 5.54M
July 14, 2020 3:56p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$32.39 million
Rev. per Employee
N/A
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/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 13.26
+0.16 +1.22%
Volume: 480,770
July 14, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,197.52
+42.30 +1.34%
Volume: 2.58B
July 14, 2020 4:20p
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