Here’s how the Times introduce their piece…. Canadian and U.S. hashish corporations are going through a spike in already excessive prices of insurance coverage to guard high executives from private legal responsibility, following a slew of lawsuits by disgruntled buyers alleging fraud and misinformation, with extra such motion anticipated.
Some of the largest hashish corporations, together with Medmen Enterprises, Canopy Growth, CannTrust Holdings, Aphria Inc and Columbia Care, have confronted shareholder litigation, accusing leaders of false claims, failing to behave within the curiosity of all shareholders and makes an attempt to defraud buyers.
The lawsuits are one more signal of souring sentiment towards an trade that has did not ship on guarantees of boundless progress. And the rising prices are one other headwind for corporations already shuttering operations and reducing jobs as a result of slower-than-expected demand.
“More frequently we’re seeing prospective investors and board members requiring (directors’ and officers’) coverage in place prior to engaging with a company in order to ensure adequate protection in the event of…litigation,” mentioned Charles Grodecki, senior vp at insurance coverage brokerage AmWINS Brokerage of the Carolinas.