Shareholders sue Canadian cannabis grower Sundial

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Canadian marijuana company Sundial is facing two class action lawsuits filed in the United States by shareholders over hundreds of pounds of alleged “un-sellable” cannabis.

The latest suit charged that the company failed to disclose that one client, Vancouver, British Columbia-based Zenabis Global, returned more than 1,200 pounds of marijuana worth $1.9 million (2.5 million Canadian dollars) because it was contaminated with mold and parts of rubber gloves, according to MarketWatch.

The lawsuit, filed in the Southern District of New York, is related to a class action suit filed in September in the same district against Sundial over the matter.

The first suit, also filed on behalf of shareholders, accuses Sundial of “materially misleading … the investing public,” according to a news release.

Sundial did not comment on the lawsuits to MarketWatch.

Sundial trades on the Nasdaq as SNDL.

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