|Company name||HEXO Corp.|
|Status||Class Action Complaint Filed|
NEW YORK, January 22, 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 Southern District of New York on behalf of investors that purchased HEXO Corp. (NYSE: HEXO) securities between January 25, 2019 and November 15, 2019 (the “Class Period”). Investors have until January 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Through a series of disclosures occurring between October 4, 2019 and November 15, 2019, the Company announced that it was producing cannabis in a section of its Niagara facility that was not properly licensed with Health Canada. As a result of these disclosures, the value of HEXO stock has consistently decreased, damaging investors.
The complaint, filed on November 26, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that defendants failed to disclose to investors that: (1) HEXO’s reported inventory was misstated as the Company was failing to write down or write off obsolete product that no longer had value; (2) HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; and (4) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased HEXO securities during the Class Period and on the New York Stock Exchange, 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 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.