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NEW YORK, May 27, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (ITHUF) and certain of its officers. The class action, filed in United States District Court for the Southern District of New York, and indexed under 20-cv-03513, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired iAnthus securities between May 14, 2018, and April 6, 2020, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased securities of iAnthus within the class period, you have until June 15, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
iAnthus is a holding company and represents that, “[t]hrough its wholly-owned subsidiaries, the Company’s principal business activity is to provide Shareholders with diversified exposure to best-in-class licensed cannabis cultivators, processors and dispensaries throughout the United States” by “acquir[ing] and operat[ing] a diversified portfolio of cannabis licenses and investments for Shareholders.” Heavily leveraged, iAnthus has at all relevant times depended upon equity and debt financing to fund its aggressive expansion plans.
The Complaint alleges that the Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, Defendants issued a series of statements representing that the Company’s business operations, financed through various debt and equity offerings, were expanding throughout the United States, without disclosing to Company shareholders that the Defendants were either unwilling or unable to utilize escrowed funds to make necessary interest payments under certain of iAnthus’s debenture agreements.
The truth about the Company’s operations and finances came to light on April 6, 2020, when iAnthus announced that it had defaulted on $4.4 million in interest payments to the private equity firm Gotham Green Partners under the parties’ Amended Debenture Agreement on March 31, 2020.
On the news of the default, iAnthus’s stock price fell $0.29 per share, or nearly 62%, to close at $0.179 per share on April 6, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby