NEW YORK, Sept. 26, 2019 /PRNewswire/ -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all investors that purchased Sundial Growers, Inc. (NASDAQ: SNDL) securities pursuant to and/or traceable to the company's August 1, 2019 initial public offering ("IPO"). Investors have until November 25, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On August 1, 2019, Sundial closed its initial public offering ("IPO"), in which it sold 11 million shares at $13.00 per share, yielding $143 million in proceeds. In the Registration Statement for the IPO, the company stated that it produces "high-quality, consistent cannabis."
On August 14, 2019, cannabis producer Zenabis Global Inc. ("Zenabis") revealed that "[c]ertain third-party producers failed to supply saleable cannabis in line with contractual obligations. Due to quality issues, Zenabis had to return or reject a total of 554 kg of cannabis from a third-party."
On August 19, 2019, MarketWatch published an article stating that Sundial had sold the cannabis to Zenabis. The article also stated that the cannabis was returned "because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter."
On this same day, the company confirmed that it was resolving an "isolated immaterial matter between Sundial and [a] Licensed Producer."
The complaint, filed on September 25, 2019, alleges that in the IPO and afterwards defendants made false and/or misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million (C$2.5 million); and (3) as a result, defendants' statements about Sundial's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Sundial's stock is currently trading at $4.45 per share, a 65% decrease from the $13.00 IPO price.
If you purchased Sundial securities during the pursuant to the IPO, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Sundial lawsuit, please go to https://bespc.com/sndl. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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