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Canopy Growth Corporation (NYSE: CGC) Investor Securities Class Action Lawsuit 11/20/2019

  • If you purchased shares of Canopy Growth Corporation (NYSE: CGC), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Canopy Growth Corporation
Security
NYSE: CGC

Case Name
Canopy Growth Shareholder Class Action Lawsuit 11/20/2019
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the District of New Jersey

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Summary

May 7, 2021 - The court granted the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.

November 23, 2020 - A motion to dismiss the second amended complaint was filed.

October 9, 2020 - A second amended complaint was filed.

June 4, 2020 - An amended complaint was filed.

November 20, 2019 - An investor in shares of Canopy Growth Corporation (NYSE: CGC) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Canopy Growth Corporation in connection with certain allegedly false and misleading statements made between June 21, 2019 and November 13, 2019.

Canada based Canopy Growth Corporation, together with its subsidiaries, engages in engages in production, distribution, and sale of cannabis in Canada. Canopy Growth Corporation reported that its annual Total Revenue rose from $77.94 million for the 12 months period that ended on March 31, 2018 to $226.34 million for the 12 months period that ended on March 31, 2019, and that its Net Loss increased from $70.35 million to $685.43 million over those respective time periods.

On November 14, 2019, Canopy Growth Corporation (NYSE: CGC) announced its financial results for the second quarter of fiscal year 2020. Among other results, Canopy reported revenue that fell below the lowest analyst estimate and an EBITDA loss of C$155.7 million, which one analyst described as “astounding.” Canopy Growth Corporation further advised investors that it was unlikely to meet its previous revenue guidance of C$250 million by the fiscal fourth quarter. Shares of Canopy Growth Corporation (NYSE: CGC) declined from $52.60 per share in April 2019 to as low as $13.81 per share on November 19, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Canopy Growth Corporation (NYSE: CGC) common shares between June 21, 2019 and November 13, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between June 21, 2019 and November 13, 2019, the defendants made false and/or misleading statements and/or failed to disclose that the Company was experiencing weak demand for its softgel and oil products, that 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 that 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.