SAN FRANCISCO, Nov. 28, 2019 (GLOBE NEWSWIRE) -- Hagens Berman has filed a class action complaint on behalf of investors in HEXO Corp. (HEXO) against the Company and its senior executives. The firm urges HEXO investors who have suffered significant losses to submit their losses now to learn if they qualify to recover their investment losses.
Hagens Berman’s HEXO Securities Class Action:
The Complaint is brought on behalf of all investors who purchased or otherwise acquired HEXO common stock during the Class Period – between Jan. 25, 2019 and Nov. 15, 2019, inclusive. The Complaint, filed in the United States District Court for the Southern District of New York and captioned Perez v. HEXO Corp., et al., Case No. 1:19-cv-10965, pursues claims against the Defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
According to the detailed Complaint filed by Hagens Berman, Defendants misled investors throughout the Class Period by making materially false and/or misleading statements, as well as failing to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, the Complaint alleges Defendants failed to disclose to investors that: (1) HEXO’s reported inventory was misstated as the Company was failing to write down or write off obsolete product that no longer had value; (2) HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The truth emerged through a series of disclosures occurring between Oct. 4, 2019 and Nov. 15, 2019, when the Company announced that was producing cannabis in a section of its Niagara facility that was not properly licensed with Health Canada.
As a result of these disclosures, the value of HEXO stock has consistently decreased, damaging investors.
“We’re focused on investors’ losses and proving Defendants knowingly provided false financial information to the market,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased HEXO common stock during the Class Period and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Lead Plaintiff Process: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased HEXO common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than Jan. 27, 2020, which is the first business day on which the U.S. District Court for the Southern District of New York is open that is 60 days after the publication date of Nov. 27, 2019. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice. Members may also choose to do nothing and remain part of the proposed Class.
Whistleblowers: Persons with non-public information regarding HEXO 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 HEXO@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