RE:For the record & to correct one poster's incorrect info: QF, it will be interesting to see how quickly Hexo's appeal makes it through the legal process.
Unfortunately those in the mj space will always be a target for class action suits as referenced by the recent "Alberta" suit.
On July 25, 2022, a court ruling was issued in respect of these legal proceedings in which the Company was awarded a favourable summary judgement ruling in the amount of $9,800, plus interest and cost. In addition, the court ruling also dismissed the counterclaim of $35,000 filed against the Group. On August 23, 2022, the defendant in the Claim filed a Notice of Appeal to the summary judgment ruling. The Group has not recognized an expected credit loss against the $8,531 trade receivable subject to this claim (Note 15.1) and has not recognized a liability in connection with the counterclaim.
On July 12, 2022, the Group received notice of an intended third-party claim against MPL by another cannabis company named as a defendant in a proposed national consumer protection class-action lawsuit filed with the Court of Queen’s Bench in Alberta (as amended from time to time, the “Alberta Claim”). The Alberta Claim seeking damages against several Canadian cannabis companies for allegations regarding the advertised THC and CBD content in the companies’ products. The Group is not a defendant in the Alberta Claim. The threatened third-party claim would seek contribution and indemnity against MPL and several other third parties in the event the defendant threatening the third-party claim is found liable for damages in the Alberta Claim. The Group has not recognized a liability in connection with this claim as it is more likely than not that the claim will not result in a cash outflow.