Shareholder Alert: Robbins LLP Announces Canopy Growth Corp. (CGC) Sued for Misleading Shareholders
SAN DIEGO & ONTARIO, Canada--(BUSINESS WIRE)--Nov 25, 2019--
Shareholder rights law firm Robbins LLP announces that a purchaser of Canopy, Inc. (NYSE: CGC) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between June 21, 2019 and November 13, 2019. Canopy produces, distributes, and sells cannabis in Canada.
If you suffered a loss as a result of Canopy’s misconduct, click here.
Canopy Growth Corp.’s (CGC) Accused of Misleading Shareholders
According to the complaint, in June 2019, Canopy filed its Form 6-K with the SEC, touting fourth quarter 2019 sales of CA$42.5 million and fiscal year 2019 sales of CA$85.3 million from its cannabis oils and softgel capsules, noting that ”[o]il and softgel capsules accounted for 40% of gross revenue in the fourth quarter of fiscal ’19.” Then, in August 2019, Canopy released first quarter 2020 cannabis oil and softgel sales of only CA$0.2 million. However Canopy’s CEO assured investors that its “oils and softgel products remain exceptionally popular.” Despite these assurances, in reality, Canopy was experiencing weak demand for its softgel and oil products. As a result, on November 14, 2019, Canopy issued a press release announcing an “astounding” larger-than-expected loss for the quarter, and a CA$32.7 million restructuring charge to modify its retail pricing architecture. On this news, Canopy’s share price fell $2.36, or nearly 14.4%, to close at $15.84 per share.
Canopy Growth Corp. (CGC) Shareholders Have Legal Options
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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SOURCE: Robbins LLP
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PUB: 11/25/2019 05:48 PM/DISC: 11/25/2019 05:48 PM