SAN FRANCISCO, July 20, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Canopy Growth Corporation ( CGC) investors who suffered substantial losses to submit your losses now.
Class Period: May 31, 2022 – May 10, 2023
Lead Plaintiff Deadline: July 24, 2023
Contact An Attorney Now: [email protected]
The litigation focuses on the propriety of Canopy’s accounting and the effectiveness of its internal controls over financial reporting.
The complaint alleges Defendants failed to disclose to investors that: (1) there were material weaknesses in Canopy’s internal controls over accounting and financial reporting; (2) as a result, Canopy improperly booked sales of its BioSteel business unit; and (3) as a result, Canopy overstated its revenues.
Investors learned the truth on May 10, 2023, when Canopy announced that investors should no longer rely on its financial statements for the fiscal year ended March 31, 2022, and for the quarterly periods ended June 30, September 30, and December 31, 2022. The company explained that its BioSteel segment prematurely recognized revenue and “correction of the misstatements is expected to reduce certain revenues previously recognized and adjust related balance sheet items[.]”
This news drove the price of Canopy shares sharply lower on May 11, 2023.
After the filing of the complaint, on June 22, 2023, Canopy restated its financial results, revealing that the correction resulted in a decrease of $10 million in net revenue for FY2022 and $14 million in net revenue for the nine months ended December 31, 2022.
The Company also disclosed that it was implementing several remedial actions, including management changes and appropriate personnel actions.
Finally, Canopy stated that as a result of the BioSteel accounting errors, the Company is the subject of an investigation by the SEC and an ongoing informal inquiry by regulatory authorities in Canada.
“We’re focused on investors’ losses and proving Canopy management intentionally cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Canopy and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Canopy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895