|Company name||Canopy Growth Corporation|
|Status||Class Action Complaint Filed|
NEW YORK, January 2, 2020 – Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of investors that purchased Canopy Growth Corporation (NYSE: CGC) securities between June 21, 2019 and November 13, 2019 (the “Class Period”). Investors have until January 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On November 14, 2019, before the market opened, the Company issued a press release announcing their earnings for the second quarter of fiscal year 2020, posting a larger-than-expected loss for the quarter. The Company announced it would be modifying its retail pricing architecture and taking a CA$32.7 million restructuring charge.
On this news, shares of Canopy fell $2.36 per share or nearly 14.4% to close at $15.84 per share on November 14, 2019, damaging investors.
The complaint, filed on November 21, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing weak demand for its softgel and oil products; (2) as a result, the Company would be forced to take a CA$32.7 million restructuring charge due to poor sales, excessive returns, and excess inventory; and (3) due to the foregoing, defendants’ statements about Canopy’s receivables, business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Canopy Growth Corporation shares during the class period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.