This law expert is sharing his insight about the Trulieve lawsuits…

Editor’s Note: See how the lawsuits involving Trulieve have affected its investment rating in our proprietary NICILytics database – and gain access to the ratings of over 200 other cannabis companies – right here.

There’s a storm brewing in Florida, but it has nothing to do with the weather.

Near the end of December 2019, Grizzly Research made a bold statement about Trulieve Cannabis Corp. (OTC: TCNNF).

“We believe the company is a fraud.”

In a 26-page report, the company presented its case.

Trulieve CEO Kim Rivers replied shortly after in a press release.

“We ask that our investors be aware that the Report reflects the opinions of an acknowledged short seller, whose sole interest is in profiting from a decline in the price of the Company’s shares. I have full confidence in our management team and their abilities to continue to serve our customers without being distracted by these baseless allegations. Trulieve reserves all of its rights to take appropriate legal action against those responsible for the Report.”

Shareholders are now suing Trulieve, and Trulieve is suing Grizzly.

But there’s much more to this story that you need to know…

An In-Depth Look into the Trulieve Lawsuits

As a finance guy, I still like TCNNF as an investment.

To me, the Grizzly report reads more like a rant than thorough investigating. And some of the findings are just downright sloppy. For example, it points out sale-leaseback transactions as some sort of inside deals. This deal was a transaction conducted with Innovative Industrial Properties Inc. (NYSE: IIPR) and was announced in a press release.

Trulieve and IIPR are among the many stocks included in The Institute’s proprietary cannabis indices. Learn how to get the most out of these free tools.

As for fudging the numbers, that’s what auditors and accounting standards are for. This is something Grizzly will have to prove in court.

I don’t know what to make of Kim’s husband in all of this, but I’m not going to hang that on her. Trulieve has a 60% market share in Florida and didn’t get way over its skis with capital – no wonder it’s profitable.

But I’m no law expert.

Fortunately, my friend, colleague, lawyer, and Advisory Board member Joshua Sanderlin is an expert.

One of the biggest questions we’ve received is how can a short seller make potentially false and misleading claims and publish that information and, in turn, profit from their short position.

Joshua is going to walk you through that answer and will break down everything that is happening in the report below.

Take care,

Don Yocham, CFA

Executive Director, National Institute for Cannabis Investors

P.S. I’m heading down to Miami tomorrow for two big conferences. While I’m there, I’ll be looking for profit opportunities for you – so keep an eye on your inbox tomorrow for an exclusive on-the-ground update!


Comments

13 responses to “An Expert’s Take on the Trulieve Lawsuits”

  1. The people from Grizzly should be fined to the point of going bankrupt and their executives should go to jail!!!!!! Why doesn’t the SEC step in and do something about this once and for all? Every time a shorting company gets away with something like this they are essentially ROBBING shareholders!!

  2. Thank you for the informative details, what a mess!! Cant wait for the walk through, sadly most information put out just atira up more confusion. It’s nice to have reliable sources and professionals like you helping put truth to the chaos.

  3. Joshua, thank you for the pod cast. Can you tell investors about how long law suites of this nature can take to work through the court systems 1-2 years, 2 to 3 years is there anyway of knowing?

  4. I appreciate Joshua’s comments. He sounds like a bright attorney. In my investing experience I have owned positions in companies in a similar situation as Truelieve. Being attacked by short sellers rarely is solved by legal action. I wish Truelieve luck but from my experience it can be nearly impossible to stop short sellers false statements. What makes it worse is legitimate websites like Seeking Alpha rarely will stop these types of unsubstantiated false allegations. Getting law enforcement or regulators to take action won’t happen. They are inundated with much more serious fraud cases and simply do not have the resources. Suing them for damages is expensive and may make things worse by bringing more attention than is deserved. The system is stacked in the short sellers favor. So what happens? Management is forced to play “whack a mole” as Grizzly will employ anonymous bloggers to come up with false stories management will feel obligated to respond to. This is a big waste of management resources which take up their time they should be spending on making money. The only effective action for management to take is to make money and prove them wrong. IMHO

    • That is a great way of putting it Michael, I couldn’t have said it any better, all in all, it never get better with the Courts involved. The fact is, all it does for Trulieve – cost a whole lot of money and resources, that could be used in making a Company such as Trulieve from reaching its potential.

      Michael Y.

  5. It is an absolute disgrace that some people make a living from lies, bashing, misinformation, & deceit. What ever happened to telling the truth? I can’t understand how those people sleep at night. I think the bottom line for this behavior is just plain greed.

  6. Why worry about right now of suing anyone or who suing who or just suing .sounds like someone needs to tell the truth and get right down to the bottom of what going on, and the facts befor some starts talking about suing. Seem like that’s all your here is someone wants to be suing . Please get to the truth of thangs. And I hope I’m not missing something here but aunt that what we stand for. Love nicin.
    .

  7. I hope if this is all false, that all of us stock holders get in on putting this bunch of crooks out of business. This really sounds like a sore loser to me. But the sorry court system in this country can drag this out for years and only the good people get hurt.

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