A lawsuit was filed on behalf of investors in Cronos Group Inc. (NASDAQ: CRON) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/25/2020 -- An investor, who purchased NASDAQ: CRON shares, filed a lawsuit over alleged violations of Federal Securities Laws by Cronos Group Inc., formerly known as PharmaCan Capital Corp.
Investors who purchased shares of Cronos Group Inc. (NASDAQ: CRON) have certain options and for certain investors are short and strict deadlines running. Deadline: May 11, 2020. NASDAQ: CRON investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On Feb. 24, 2020, Cronos Group Inc announced, without explanation, it would not be (i) timely filing its Q4 and FY 2019 earnings release and (ii) hosting a conference call with investors previously scheduled for Feb. 27, 2020. In response, the price of Cronos shares sharply fell.
On Mar. 2, 2020, Cronos Group Inc revealed the existence of "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." The Company further stated it expects to report for FY 2019: (1) a material inventory write-down; (2) a material decrease in gross profit; and, (3) a material increase in operating loss. This news caused the price of Cronos shares sharply decline during after-hours trading.
The plaintiff claims that between May 9, 2019, and March 2, 2020, the Defendants made false and/or misleading statements and/or failed to disclose that Cronos had engaged in significant transactions for which its revenue recognition was inappropriate, that the foregoing would foreseeably necessitate reviews that would delay the Company's ability to timely file its periodic reports, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Cronos Group Inc. (NASDAQ: CRON) have certain options and should contact the Shareholders Foundation.
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