Tilray Brands, Inc. ( TLRY ) and its subsidiary HEXO Corporation announced on Thursday the successful dismissal of a lawsuit filed by Clement Italume.

The company’s shares are trading slightly higher in the morning session following the announcement.

The Massachusetts Superior Court, Suffolk County, granted Tilray and HEXO’s motion for summary judgment, dismissing Italume’s claims.

The lawsuit, which sought approximately $8 million in damages, alleged that HEXO and Tilray failed to adequately notify shareholders about HEXO’s corporate actions in December 2022 and Tilray’s acquisition of HEXO in June 2023.

The plaintiff also claimed that a reverse stock split was improperly executed to “delete” or convert his HEXO shares.

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The court rejected these allegations, finding no substantial evidence that the corporate actions caused any financial loss to shareholders or that the companies failed to properly inform investors.

The ruling also noted that the plaintiff could not establish credible damages arising from his claims. It remains uncertain whether Italume will appeal the decision.

According to Benzinga Pro, TLRY stock has lost over 73% in the past year. Investors can gain exposure to the stock via AdvisorShares Pure Cannabis ETF ( YOLO ) .

Also, Tilray is bolstering its presence in the U.S. retail market through a strengthened partnership with Whole Foods Market.

The company is bringing back its HiBall Energy brand, which offers zero-calorie, sugar-free energy drinks, to retail shelves this spring.

HiBall Sparkling Energy Seltzer Waters is marketed as a healthier alternative to conventional energy drinks. This move aligns with Tilray’s strategy to expand its wellness offerings as it continues to diversify its portfolio.

Price Action: TLRY shares are trading higher by 3.4% to $0.6775 at last check Thursday.

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