Plaintiffs Files Cannabis-Related Securities Class Action Lawsuits

For those of us involved in day to day D&O insurance transactions, it is a recognized fact that cannabis-related companies represent a tough class of insurance business. Different insurers take different approaches to the business, but at best it is a risk class that most carriers approach warily. There are reasons for the caution, mostly having to do with questions relating to legality across and between jurisdictions. The question of potential claims is a little less certain, as there arguably are relatively few claims examples. However, a recent securities class action lawsuit involving a Canadian-based cannabis business may provide some insight into the kinds of claims in which these kinds of companies may become involved – at least those that are publicly traded.   Background Cronos Group is a Canadian-based company organized to produce and distribute cannabis products with the requirements of Health Canada’s Access to Cannabis for Medical Purposes…

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