Prickett Jones Successfully Enforces Derivative Settlement Against Corporation

February 17, 2025

The Delaware Court of Chancery has entered judgment in favor of Prickett Jones & Elliott, PA’s clients and against Tilray Brands, Inc. and Privateer Evolution, LLC, holding that a court-approved settlement of a prior stockholder derivative action brought on behalf of Tilray released the clients from Tilray’s claim for an additional $13 million under a related guaranty. Michael Blue, et al. v. Tilray Brands, Inc., et al., 2025 WL 519848 (Del. Ch. Feb. 17, 2025). Prickett Jones’s clients were defendants in a prior stockholder derivative action captioned In re Tilray, Inc. Reorganization Litig., C.A. No. 2020-0137-KSJM, concerning the reorganization of Tilray. The case settled for a $39.9 million payment to Tilray on behalf of all defendants. Four months later, Tilray demanded Prickett Jones’s clients pay an additional $13 million under a guaranty they had given in connection with the reorganization. Prickett Jones and its clients successfully sued Tilray to enforce the releases provided for in the derivative settlement.

Prickett Jones Directors Marcus E. Montejo and John G. Day and Associate Seth T. Ford litigated the action on behalf of clients Michael Blue, Christian Groh and Brendan Kennedy.