Hexo wins complete dismissal of putative securities class action lawsuit

Hexo announced that it has won a complete dismissal of the putative securities class action lawsuit pending before the Quebec Superior Court against the company and its former CEO, filed on November 19, 2019 on behalf of certain primary market and secondary market purchasers of securities of the company. As previously disclosed, Hexo and its former CEO were named in a shareholder class action lawsuit filed in the province of Quebec. The lawsuit asserted causes of action for misrepresentations and breaches of disclosure obligations under the Quebec Securities Act and the Civil Code of Quebec in connection with certain statements contained in Hexo’s prospectus, public documents and public oral statements between April 11, 2018 and March 27, 2020. In a 48-page opinion dated January 23, the Superior Court of Quebec dismissed the Plaintiff’s amended motion in its entirety, with costs. The court agreed with the defendants that there was "no reasonable possibility" that the secondary market claim filed under the Quebec Securities Act had a reasonable chance of success, or that the Plaintiff had demonstrated an arguable case for a primary market class action or a civil liability class action "for misrepresentation under the general principles of fault in the civil law." The Plaintiff has a right to appeal.