A lawsuit was filed on behalf of investors in Canopy Growth Corporation (NASDAQ:CGC) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 06/06/2023 -- The Shareholders Foundation announced that an investor, who purchased shares of Canopy Growth Corporation (NASDAQ: CGC), filed a lawsuit over alleged violations of Federal Securities Laws by Canopy Growth Corporation.
Investors who purchased shares of Canopy Growth Corporation (NASDAQ: CGC) have certain options and for certain investors are short and strict deadlines running. Deadline: July 24, 2023. NASDAQ: CGC investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On May 10, 2023, Canopy Growth Corporation announced non-reliance on previously issued financial statements on Form 8-K. Canopy Growth Corporation stated "management of the Company identified certain trends in the booking of sales by the BioSteel Sports Nutrition Inc. ("BioSteel") business unit for further review. The Company, together with independent external counsel and forensic accountants, and under the oversight of the Audit Committee (the "Audit Committee") of the Board of Directors (the "Board") of the Company, initiated an internal review of the financial reporting matters related to BioSteel (the "BioSteel Review"). Although the BioSteel Review remains ongoing, the Company has preliminarily identified material misstatements in the Prior Financial Statements (as defined below) related to sales in the BioSteel business unit that were accounted for incorrectly. In particular, on May 4, 2023, the Company, in consultation with the Audit Committee, concluded that the Company's (i) audited consolidated financial statements for the fiscal year ended March 31, 2022, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (the "2022 10-K"), and (ii) unaudited consolidated financial statements for the quarterly periods ended June 30, 2022, September 30, 2022 and December 31, 2022, included in the Company's Quarterly Reports on Form 10-Q for such quarterly periods (collectively, the "Form 10-Qs" and together with the 2022 10-K, the "Prior Financial Statements"), should no longer be relied upon because of certain material misstatements contained in the Prior Financial Statements. In addition, the reports of the Company's independent registered public accounting firm included in the 2022 10-K should no longer be relied upon."
Shares of Canopy Growth Corporation (NASDAQ: CGC) declined from $3.22 per share on February 02, 2023 to as low as $1.02 per share on May 12, 2023.
The plaintiff claims that between May 31, 2022 and May 10, 2023, the Defendants failed to disclose to investors that there were material weaknesses in the Company's internal controls over accounting and financial reporting, that, as a result, the Company improperly booked sales of its BioSteel business unit, that, as a result, the Company's revenue was overstated, and that 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.
Those who purchased shares of Canopy Growth Corporation (NASDAQ: CGC) have certain options and should contact the Shareholders Foundation.
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About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.