SAN FRANCISCO, Nov. 20, 2019 (GLOBE NEWSWIRE) -- Hagens Berman urges Canopy Growth Corporation (CGC) investors who have suffered losses on or before Nov. 15, 2019 to submit their loss now to learn if they qualify to recover compensable damages. The firm is investigating Canopy for potential violations of the securities laws and CGC investors may have valuable claims.
Canopy Growth (CGC) Investigation:
The investigation centers on the accuracy of Canopy Growth’s revenue and inventory accounting.
In past quarters, Canopy, the first cannabis producer to be listed on the New York Stock Exchange, touted its “integrity,” focus on execution, and record sales, often reporting quarter-over-quarter revenue growth of over 90%.
But on July 3, 2019, the Company announced it had terminated co-CEO and board member Bruce Linton after posting a net loss of $323 million in its fiscal 2019 fourth quarter.
Then, on Aug. 15, the Company released quarterly financial results showing a decline in revenue, low gross margins and a massive net loss.
Finally, on Nov. 14, 2019, Canopy announced another disappointing 2Q 2020 earnings, blaming the poor results on inventory write-offs and restructuring charges for product returns, return provisions and pricing allowances. Canopy’s CEO Mark Zekulin said he would be stepping down once a replacement was found.
The news shocked analysts, including Bill Kirk of MKM Partners who called the magnitude of the loss “astounding” and said Canopy’s “excessive equity comp policy” was responsible for much of it.
This news sent the price of Canopy Growth shares plummeting over 14% on November 14, 2019.
“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