SAN FRANCISCO, July 15, 2019 /PRNewswire/ -- Hagens Berman updates investors in CannTrust Holdings Inc. (CTST) concerning recent news and reminds them of the September 9, 2019 Lead Plaintiff deadline in Huang v. CannTrust Holdings Inc. et al., No. 1:19-cv-06396 (S.D.N.Y.).
If you purchased or otherwise acquired CannTrust securities between November 14, 2018 and July 5, 2019 (the "Class Period") and suffered significant losses, you may qualify to be a lead plaintiff – one who selects and oversees the attorneys prosecuting the case. If you wish to serve as lead plaintiff, you must move the Court no later than September 9, 2019 (the "Lead Plaintiff deadline"). Contact Hagens Berman immediately for more information about the case and being a lead plaintiff:
or contact Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing
The complaint alleges Defendants misrepresented and concealed that CannTrust was growing cannabis in its Pelham, Ontario greenhouse facility in unlicensed rooms and that the Company was providing inaccurate information to Canadian regulator, Health Canada.
On July 8, 2019, Defendants disclosed that Health Canada found that the Company's Pelham, Ontario facility violated certain regulations. As a result, Health Canada placed a hold on 5,200 kilograms of dried cannabis harvested from unlicensed rooms and the Company voluntarily withheld an additional 7,500 kilograms.
On July 11, 2019, Defendants announced CannTrust (1) suspended sales and shipments of all of its cannabis products and (2) established a special committee to investigate the matter.
In response to this news, CTST's stock price cut nearly in half over five trading days. Analysts at Canaccord have downgraded CTST, noting that it is "within the realm of possibility" that Health Canada may "look to make an example out of CannTrust and potentially pull the company's production license."
"We're focused on investors' losses and whether Defendants misrepresented and concealed CannTrust's compliance with applicable laws and regulations," said Hagens Berman partner Reed Kathrein.
About Hagens Berman
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Reed Kathrein, 510-725-3000
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