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Reports: Tilray Sued By Soap Company Trimax

Canadian cannabis company Tilray Inc. has been hit with a $300 million lawsuit by soap company Trimax Corp. for allegedly trying to bankrupt one of Trimax's subsidiaries in order to buy the company cheaply for its line of CBD products, according to reports.

The lawsuit was reportedly filed in Florida state court in early December and moved to federal court recently. The news about the lawsuit was first reported by Law360 and later by Bloomberg.

According to the reports, the lawsuit allegedly claims that Tilray sought to acquire a significant stake in Trimax's subsidiary Saavy Naturals Inc. so that it could benefit from Savvy's existing CBD product lines and its distribution relationships with major retailers like Walmart.

Trimax alleged that Tilray's parent company Privateer Holdings attempted to convince Trimax's owners to make their company go bankrupt so that Tilray would be able to buy the bankrupt company cheaply.

Trimax shareholders are said to be seeking damages of $150 million as well as another $150 million in punitive damages, totaling $300 million.

Tilray currently has a market capitalization of $1.7 billion.

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