Canopy Growth Investors Drop Suit Over Canada Joint Launch Cost

Jan. 23, 2026, 4:51 PM UTC

Canopy Growth Corp. investors voluntarily dismissed their lawsuit alleging the cannabis company concealed production costs tied to launching a line of prerolled joints in Canada that resulted in disappointing quarterly financial results.

The court-appointed investors leading the case told the US District Court for the Eastern District of New York Thursday they were ending the proposed class action without prejudice, leaving the opportunity to refile. The investors were supposed to file an updated complaint Thursday, according to an agreed-upon schedule, in the lawsuit alleging Canopy overhyped the health of its gross margins and expense-reduction measures, including reducing production costs of ...

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