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WILMINGTON, DE / ACCESSWIRE / March 12, 2020 / Rigrodsky & Long, P.A. announces that it has filed a complaint in the United States District Court for the Eastern District of New York on behalf of all persons or entities that purchased the common stock of Cronos Group Inc. ("Cronos" or the "Company") (NASDAQ:CRON) between May 9, 2019 and March 2, 2020, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
If you purchased shares of Cronos during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org, or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on February 24, 2020, Cronos made a partial, limited disclosure of problems with its financial reporting, announcing that "it will delay its 2019 fourth quarter and full-year earnings release and conference call, previously scheduled for Thursday, February 27, 2020. The Company has had a delay in the completion of its financial statements and will make a further announcement in a subsequent press release to schedule the date and time of the earnings conference call."
On this news, the price of the Company's stock fell from a close of $7.15 (USD) per share on February 21, 2020 to close at $6.37 (USD) per share on February 24, 2020, the next trading day and the day of the announcement.
Then, on March 2, 2020, Cronos issued a press release announcing that it had filed a Form 12b-25 with the SEC, providing the Company a 15-day extension of the due date for filing its Annual Report on Form 10-K for the year ended December 31, 2019 (the "Form 10-K"). On that same day, the Company also filed a Form 12b-25 with the SEC stating that it would file a Form 10-K with the SEC with fifteen days because "[t]he Company has been unable to complete its financial statements for fiscal 2019 due to a continuing review by the Audit Committee of the Company's Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions."
On this news, shares of Cronos fell over 11%, closing at $5.32 (USD) per share on March 3, 2020, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than May 11, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
Attorney advertising. Prior results do not guarantee a similar outcome.
SOURCE: Rigrodsky & Long, P.A.
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