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Cases & Deals

January 3, 2022

Trulieve Cannabis Corp Wins Dismissal with Prejudice of Securities Fraud Class Action

King & Spalding obtained the dismissal with prejudice of a securities fraud class action filed against client Trulieve Cannabis Corp in New York and Florida federal courts. Trulieve investors claimed that the company misled investors about the quality of its products and the source of its funding.  The K&S team moved to dismiss the case for failure to state a claim. K&S also argued, and the Court agreed, that plaintiffs failed to adequately allege scienter with respect to any of the alleged misstatements or omissions. On March 18, 2021, the Court dismissed the Class Action Complaint and allowed plaintiffs leave to file a second amended complaint (“SAC”), K&S moved to dismiss the SAC on the same grounds, and the Court found that plaintiffs again failed to plead the necessary element of scienter.  On December 30, 2021, the Court granted K&S’s motion and dismissed the SAC without further leave to amend, then entered final judgment in the case on January 3, 2022.