NEW YORK, Oct. 23, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Greenlane Holdings, Inc. (“Greenlane” or the “Company”) (NASDAQ: GNLN) and certain of its officers. The class action, filed in United States District Court, for the Southern District of Florida, and indexed under 19-cv-81411, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Greenlane common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s April 2019 initial public offering (“IPO” or the “Offering”). Plaintiff pursues claims against the Defendants under the Securities Act of 1933 (the “Securities Act”).
If you are a shareholder who purchased Greenlane common stock pursuant or traceable to the Registration Statement issued in connection with the Company’s April 2019 IPO, you have until November 11, 2019, 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. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Greenlane distributes e-cigarettes, vaporizers, and accessories through its subsidiaries. The Company also distributes premium products containing hemp-derived CBD.
On April 22, 2019, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 6.45 million shares of common stock at a price of $17.00 per share. The Company received proceeds of approximately $110 million from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used for capital improvements to its warehouses and other facilities, capital expenditures relating to its information technology systems, working capital, and general corporate purposes.
The complaint alleges that the Registration Statement was negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, the Registration Statement made false and/or misleading statements and/or failed to disclose that: (i) the City of San Francisco had introduced a major initiative to ban the sale of e-cigarette products across three major cities and prohibit the manufacture of products at the headquarters of Greenlane’s key partner, JUUL Labs; (ii) if approved, the initiative would materially and adversely impact the Company’s financial results and prospects; and (iii) as a result, the Registration Statement was materially false and/or misleading and failed to state information required to be stated therein.
On June 18, 2019, the San Francisco Board of Supervisors unanimously approved the ban on the sale and distribution of e-cigarette products within the city. It also endorsed a ban on the manufacturing of e-cigarette products on city property.
On this news, the Company’s stock price fell $2.27 per share, or over 17%, to close at $11.00 per share on June 19, 2019, on unusually heavy trading volume. The stock price continued to decline over the course of the next three trading sessions, dropping $1.68 per share, or over 15%, to close at $9.32 per share on June 24, 2019. By the commencement of this action, Greenlane stock was trading as low as $3.47 per share, a nearly 80% decline from the $17.00 per share IPO price.
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