Cronos Group Inc.
Lead Plaintiff Deadline: 05/11/2020
SUMMARY OF CASE:
A securities class action has been filed against Cronos Group Inc. (CRON) on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Cronos securities between May 9, 2019 through March 2, 2020. This case has been filed in the USDC – E.D.N.Y.
The Complaint alleges that on Feb. 24, 2020, Cronos 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, after the market closed, Cronos 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 that 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 sent the price of Cronos shares sharply lower in after-hours trading.