A federal judge in Fort Lauderdale, Florida, USA, has dismissed investors’ lawsuit against tobacco distributor Greenlane Holdings, reports Reuters.
Investors filed a class action lawsuit, claiming Greenlane should have mentioned a pending ban on e-cigarettes before publicly offering stock in 2019.
U.S. District Judge Roy Altman dismissed the proposed class action, saying the distributor for Juul Labs had no duty to flag San Francisco’s then-pending ban on e-cigarettes to investors ahead of its initial public offering in 2019, according to Reuters. Altman called the class action “nothing more than a hammer in search of a nail.”
Altman ruled that the investors did not have a viable claim under the Securities Act of 1933 because Greenlane warned them of the risk of increased tobacco regulation in its registration statement, and the proposed e-cigarette ban was already public.