Canadian cannabis company Tilray Brands (TLRY) stock climbed more than 8% in yesterday’s trading session after securing a major legal victory. The Massachusetts Superior Court dismissed a lawsuit brought by a HEXO shareholder, removing a legal hurdle that had cast uncertainty over Tilray and its subsidiary, HEXO Corporation. The win comes ahead of the company’s Q3 FY25 financial results, which are set to be released on April 8.
What Was the Lawsuit About?
The lawsuit, filed by Clement Italume, claimed that HEXO and Tilray did not give shareholders enough notice about HEXO’s corporate actions in December 2022 and Tilray’s acquisition of HEXO in June 2023. Italume argued that this lack of clear updates led to financial losses and sought about $8 million in damages. The plaintiff also accused HEXO of planning a reverse stock split to take advantage of shareholders and reduce their holdings unfairly.
Tilray and HEXO denied the claims, saying that they had properly shared all needed details with shareholders. The Massachusetts Superior Court sided with them, deciding that Italume did not provide enough proof that these corporate actions led to financial harm. The court also rejected the claim that HEXO’s reverse stock split was meant to take away shareholder value.
Here’s What to Expect from TLRY’s Q3 FY25 Results
With the lawsuit now behind it, Tilray is set to report its fiscal Q3 earnings soon. Wall Street analysts expect the company to post a loss of $0.04 per share, an improvement from the $0.12 loss in the same quarter last year.
Meanwhile, revenues are expected to grow by 12.3% from the year-ago quarter to $211.6 million, according to data from the TipRanks Forecast page. Investors will be watching closely to see if Tilray meets or exceeds these expectations as it moves forward without the legal overhang.
Is Tilray a Good Stock to Buy Now?
Turning to Wall Street, TLRY has a Moderate Buy consensus rating based on 2 Buys and six Hold ratings assigned in the last three months. At $1.68, the average Tilray price target implies 135.29% upside potential.
