NEW YORK, July 13, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) continues to investigate claims on behalf of investors who purchased shares of CannTrust Holdings Inc. ("CannTrust" or the "Company") (NYSE: CTST; OTC: CNTTF) on the New York Stock Exchange.
On July 11, 2019, after the close of trading, CannTrust disclosed that "it has implemented a voluntary hold on sale and shipment of all cannabis products as a precaution while Health Canada visits and reviews its Vaughan, Ontario manufacturing facility. CannTrust placed a hold on medical sales through their customer service line and online as of 11:59 p.m. on July 10."
Further, the Company disclosed that an independent special committee of the board of directors has been established: "CannTrust has also announced that a Special Committee of the Board of Directors has been established. The Special Committee is comprised of independent members of the Board of Directors. The purpose of the Special Committee is to investigate this matter in its entirety."
Also on July 12, 2019, Bloomberg published a story titled "CannTrust Could Lose Its Pot License Amid a Deeping Sell-Off." The article reported that "CannTrust shares have lost 46% since the beginning of the week, when it disclosed that Canadian regulators gave a non-compliant rating to its greenhouse in Pelham, Ontario. In an unannounced inspection, regulators found the company grew pot in unlicensed rooms, provided "false and misleading information" to inspectors and had inadequate record keeping, according to Health Canada spokeswoman Tammy Jarbeau. . . . Canadian law gives Health Canada a number of ways to respond to non-compliance, including "suspension or cancellation of a federal license" or the issuance of a fine up to C$1 million, Jarbeau said in an email."
On July 12, 2019, after the opening of trading, CannTrust shares declined from a closing price on July 11, 2019 of $3.11 per share, to close at $2.56 per share, a decline of $0.55 per share, or over 17% on the NYSE on heavy volume.
If you purchased CannTrust shares on the New York Stock Exchange, and would like to discuss our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
Previously, on July 11, 2019, Kaplan Fox announced that it filed a complaint against CannTrust, Peter Aceto, the Company's CEO, Greg Guyatt, the Company's CFO, and Ian Abramowitz, the Company's former CFO alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. The action is brought on behalf of a class of all persons and entities who purchased the publicly traded common stock of CannTrust on the New York Stock Exchange ("NYSE") or any U.S.-based trading platform between November 14, 2018 and July 5, 2019, inclusive (the "Class Period").
If you are a member of the proposed Class, you may move the court no later than September 9, 2019 to serve as a lead plaintiff for the proposed Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
A copy of the complaint may be viewed here.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
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New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
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San Francisco, California 94104
Fax: (415) 772-4707