SAN FRANCISCO, CA / ACCESSWIRE / December 4, 2019 / Hagens Berman urges Canopy Growth Corporation (CGC) investors who have suffered losses in excess of $100,000 to submit their losses now to learn if they qualify to recover compensable damages. A securities fraud class action was recently filed against the Company and its senior executives.
Class Period: June 21, 2019 - Nov. 13, 2019
Lead Plaintiff Deadline: Jan. 21, 2020
Canopy Growth (CGC) Securities Class Action:
The complaint alleges that throughout the Class Period Defendants misrepresented and failed to disclose that: (1) the Company was experiencing weak demand for its softgel and oil products; (2) as a result, the Company would be forced to take a CA$32.7 million restructuring charge due to poor sales, excessive returns, and excess inventory; and (3) due to the foregoing, Defendants' statements about Canopy's receivables, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
The complaint alleges that the true details regarding Canopy's business and prospects entered the market on Nov. 14, 2019, when the company announced a disappointing 2Q 2020 earnings, blaming the poor results on inventory write-offs and restructuring charges for product returns, return provisions and pricing allowances.
This news caused the price of Canopy Growth shares to decline, damaging Canopy investors.
If you invested in Canopy Growth between June 21, 2019 and Nov. 13, 2019 and suffered significant losses (in excess of $100,000) you may qualify to be a lead plaintiff - one who selects and oversees the attorneys prosecuting the case. Contact Hagens Berman immediately to obtain additional information about this case or being a lead plaintiff.
"We're focused on recovering investors' losses and determining whether Canopy executives misstated financials while lining their pockets with excessive compensation," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Canopy Growth and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Canopy Growth 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 CGC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000
SOURCE: Hagens Berman Sobol Shapiro LLP
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