CannTrust Holdings Inc.
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of shareholders of CannTrust Holdings Inc., (“CannTrust” or the “Company”) (NYSE: CTST) between February 25, 2019, and July 12, 2019, inclusive (the “Class Period”).
If you purchased CannTrust Holdings Inc., securities and/or would like to discuss your legal rights and options, please click “Join Class Action” above.
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of shareholders of CannTrust Holdings Inc., (“CannTrust” or the “Company”) (NYSE: CTST) between February 25, 2019, and July 12, 2019, inclusive (the “Class Period”). The lawsuit filed in the United States District Court for the Southern District of New York seeks to recover damages for CannTrust investors under the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than September 9, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
According to the lawsuit, throughout the Class Period, Defendants failed to disclose that: (1) the Company was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending; (2) the Company’s Pelham greenhouse did not comply with certain regulations; (3) as a result, the Company was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; (4) as a result, the Company’s customers would face shortages and would likely seek product from CannTrust’s competitors; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On July 8, 2019, the Company revealed that Health Canada had discovered in an audit that Canntrust had been growing cannabis in five unlicensed rooms at the Niagara Facility from October 2018 to March 2019. Health Canada also found that “inaccurate information [was] provided to the regulator by CannTrust employees.” As a result, the Niagara Facility was “non-compliant with certain regulations.” On this news the price of CannTrust common stock dropped from a close of $4.94 per share on Friday July 5, 2019, to a close of 3.83 per share on Monday July 8, 2019.
Then on July 12, 2019, CannTrust issued a press release titled “CannTrust Voluntary Hold On Product Sales and Formation of Independent Special Committee of the Board of Directors.” The release stated that CannTrust had instituted a voluntary hold on the sale and shipment of all of its cannabis products while Health Canada visits and reviews its Vaughan, Ontario manufacturing facility.
On this news, the price of CannTrust common stock dropped from a close of $3.11 per share on July 11, 2019, to a close of $2.58 per share on July 12, 2019.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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