Neptune Wellness Solutions Inc.
Lead Plaintiff Deadline: 05/17/2021
SUMMARY OF CASE:
A securities class action has been filed against Neptune Wellness Solutions Inc. (NEPT )on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Neptune securities between July 24, 2019 through February 16, 2021. This case has been filed in the USDC – E.D.N.Y.
The Complaint alleges that on February 15, 2021, Neptune announced disappointing financial results for the third quarter of the Company’s fiscal year 2021, missing analyst expectations. Among other results, Neptune reported third quarter revenues of CA$3.32 million and a net loss of CA$73.8 million, down 63.81% and over 1,000% year-over-year, respectively. Neptune attributed the net loss, in part, to a CA$35.6 million impairment of goodwill and a CA$2.1 million impairment of “property, plant and equipment and right-of-use assets related to the acquisition of SugarLeaf in July 2019,” as well as accelerated amortization of CA$13.95 million “also related to the SugarLeaf acquisition.” Additionally, the Company disclosed that its “[g]ross margin declined to a loss of 268.3%,” which included a non-cash CA$7.39 million “write-down of inventory and deposits to reflect their net realizable value.”
On this news, Neptune’s common share price fell $0.86 per share, or 30.71%, to close at $1.94 per share on February 16, 2021.