Trulieve Makes a Stand Against False and Misleading ‘Short and Distort’ Reports
Grizzly Research and Trulieve Are Headed for the Florida Courts
Trulieve Cannabis (CSE: TRUL) (OTCQX: TCNNF) is hitting back against the ‘short and distort’ stock manipulator Grizzly Research after it was reported today that the company officially filed a lawsuit against the short-seller in the state of Florida.
Trulieve is suing Grizzly Research LLC for “defamation for publicly disseminating false and libellous statements” in the controversial short report they published on December 17, 2019.
The company called the report “false, misleading, and unsubstantiated” and believes it was published in an attempt to manipulate Trulieve’s share price for Grizzly’s own financial gain.
“This lawsuit represents Trulieve’s firm stance against such false and misleading reports. We will work tirelessly to fight back against these fraudulent claims in a legal setting. The truth matters deeply to the Trulieve team, and we are proud to champion honesty in our industry and hopefully prevent this firm from using slander in an attempt to manipulate stock prices in the future. We will protect our brand by ensuring that the trust between Trulieve and its shareholders, as well as customers, is never called into question.”
Trulieve also addressed the potential class-action suits against the company which were announced immediately after the short report occurred. You may have noticed similar ‘ambulance chaser’ firms that show up at the scene and pile on whatever company happened to be the subject of a short report, despite most likely having little knowledge about what actually took place. Take a look at the news feed for Aphria (TSX: APHA) (NYSE: APHA) (FRA: 10E) or Cronos Group (TSX: CRON) (NASDAQ: CRON) (FRA: 7CI) around the time they were hit by the Citron Research reports and you will see what we mean.
It seems Grizzly Research may have picked the wrong stock and CEO to try and exploit. Rivers has made it very clear that Trulieve intends to “prosecute this lawsuit to the fullest extent” of the law and will also demand that Grizzly retract all of the false and misleading statements published in the report.
As it pertains to the lawsuit, no dollar figures have been released but Trulieve announced that it is seeking compensatory, special, and punitive damages plus any legal fees incurred with interest. The company says it looks forward to disproving the fraudulent claims in court and hopes to deter Grizzly from doing this to any other stocks in the future.
In the Q&A document linked below, Trulieve stated: “We will protect our brand by ensuring that the trust between Trulieve and its valued customers and shareholders is never called into question.”
For additional information on the suit including the company’s rebuttal to the Grizzly report, please visit Trulieve’s Investor/Media Q&A here.
TRUL Stock Price Action & Chart
Since being hit by Grizzly’s short report in December, shares of TRUL stock have rebounded as much as 28% before pulling back to start the 2020 new year. Look for Trulieve to continue rebounding in the coming months and should the lawsuit go as the company plans, it could give the stock a major boost.
Disclosure: The Cannabis Investor does not hold a position in any of the stocks mentioned in this article.