Investor lawsuit against NY hemp biotech company tossed

A federal judge in New York has dismissed an investor’s lawsuit accusing a hemp biotech company of lying to promote its stock price.

Based in Williamsville, 22nd Century Group researches the genetics of tobacco and cannabis plants and was accused of trying to manipulate its stock price through misrepresenting its business. Plaintiffs were seeking class-action status.

Judge John Sinatra Jr. dismissed the case last week, saying the company had no duty to disclose that it had paid for promotional articles.

22nd Century Group CEO James A. Mish applauded the dismissal and said in a statement the claim was “baseless.”

22nd Century Group trades on the NYSE American exchange as XXII.

Law 360 first reported the lawsuit’s dismissal.

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