Tilray is being sued by a leading shareholder – soap company Trimax – for allegedly trying to bankrupt one of its subsidiary companies. The suit alleges the B.C.-based cannabis producer did so in efforts to buy the company cheaply for its own line of CBD products. The lawsuit, first reported by Law360, was filed in Florida state court on Dec. 2 and moved to federal court last week.
The lawsuit allegedly claims that Tilray sought to acquire a significant stake in Trimax subsidiary Saavy Naturals with Tilray parent Privateer Holdings thinking it could benefit from Savvy’s existing distribution relationships with major retailers like Walmart. Trimax shareholders are seeking damages of US$150 million as well as another US$150 million in punitive damages, the court filings show.
Tilray, headquartered in Nanaimo, Canada cultivates and sells medical and recreational cannabis through a portfolio of brands that include Canaca, Dubon, and Manitoba Harvest. The bulk of Tilray’s sales are in Canada, but the company also sells CBD Products in the U.S. and exports medical cannabis globally from its production facilities in Canada and Portugal. Tilray also has a partnership with AB InBev to develop cannabis-infused drinks. It has a market cap of $1.8 billion.