Class-action law firm urges CTST investors to learn their shareholder rights against CannTrust to recover investment losses
SAN FRANCISCO, CA / ACCESSWIRE / September 8, 2019 / Hagens Berman updates investors in CannTrust Holdings Inc. (CTST) concerning the Company’s September 6 announcement and Bloomberg report and reminds investors of tomorrow’s September 9, 2019 Lead Plaintiff deadline in the pending federal securities fraud lawsuit.
On September 6, 2019, the Company announced it is reducing its workforce by 20%, mostly in cultivation and customer service support roles.
In addition, Bloomberg reported (1) “[s]enior operating staff working at CannTrust Holdings Inc.’s Pelham, Ont facility late last year brought cannabis seeds from the black market into production rooms, leading to some illicitly-grown pot flowing into the legal market, according to internal company documents obtained by BNN Bloomberg and four sources directly familiar with the matter” and (2) “[t]he documents suggest that, in an apparent effort to conceal the black market cannabis seeds from regulatory inspections and other staff members, some CannTrust employees changed the names of as many as 20 strains to those which the company was licensed to sell in the legal medical and recreational markets.”
If you invested in CannTrust between November 14, 2018 and July 12, 2019 and suffered losses of $100,000+, you may qualify to be a lead plaintiff - one who selects and oversees the attorneys prosecuting the case - and have until September 9, 2019 (the “Lead Plaintiff deadline”) to move the Court. 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
According to the complaint, Defendants concealed that (1) CannTrust was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending, (2) the greenhouse did not comply with certain regulations, and (3) it was reasonably likely that Health Canada would place an inventory hold until the Pelham facility becomes compliant with applicable regulations.
“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.
Whistleblowers: Persons with non-public information regarding CannTrust should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email CTST@hbsslaw.com.
About Hagens Berman
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SOURCE: Hagens Berman Sobol Shapiro LLP
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