NEW YORK, Dec. 04, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of Canopy Growth Corporation (NYSE: CGC), Energy Transfer LP (NYSE: ET), Grubhub, Inc. (NYSE: GRUB), and Aurora Cannabis, Inc. (NYSE: ACB). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Canopy Growth Corporation (NYSE: CGC)
Class Period: Securities purchased between June 21, 2019 and November 13, 2019 on the New York Stock Exchange.
Lead Plaintiff Deadline: January 20, 2020
On November 14, 2019, before the market opened, the Company issued a press release announcing their earnings for the second quarter of fiscal year 2020, posting a larger-than-expected loss for the quarter. The Company announced it would be modifying its retail pricing architecture and taking a CA$32.7 million restructuring charge.
On this news, shares of Canopy fell $2.36 per share or nearly 14.4% to close at $15.84 per share on November 14, 2019, damaging investors.
The complaint, filed on November 21, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing weak demand for its softgel and oil products; (2) 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 (3) 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.
For more information on the Canopy Growth class action go to: https://bespc.com/cgc
Energy Transfer LP (NYSE: ET)
Class Period: February 25, 2017 to November 11, 2019
Lead Plaintiff Deadline: January 20, 2020
On November 12, 2019, the Associated Press reported that Energy Transfer’s Mariner East pipeline project was under investigation by the Federal Bureau of Investigation (“FBI”). Citing interviews with current and former state employees, the Associated Press reported that the FBI’s investigation “involves the permitting of the pipeline, whether [Pennsylvania Governor Tom] Wolf and his administration forced environmental protection staff to approve construction permits and whether Wolf or his administration received anything in return.”
On this news, Energy Transfer’s stock price fell $0.81 per share, or 6.77%, over the following two trading sessions, closing at $11.16 per share on November 13, 2019.
The complaint, filed on November 20, 2019, alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Energy Transfer’s permits to conduct the Mariner East pipeline project in Pennsylvania were secured via bribery and/or other improper conduct; (ii) the foregoing misconduct increased the risk that the Company and/or certain of its employees would be subject to government and/or regulatory action; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Energy Transfer LP class action go to: https://bespc.com/et
Grubhub, Inc. (NYSE: GRUB)
Class Period: July 30, 2019 to October 28, 2019
Lead Plaintiff Deadline: January 20, 2020
On October 28, 2019, Grubhub announced disappointing financial results for its third fiscal quarter of 2019. The Company revealed that an important Company demand metric, daily average grubs, had actually fallen 6% sequentially despite an increase in active diners and the Company’s highly touted demand initiatives. Defendants also decreased Grubhub’s 2019 earnings and revenue projections and stated that the Company would achieve only $100 million in EBITDA for 2020, more than 70% below market expectations.
On this news, Grubhub stock decreased more than 40% on October 29, 2019, to close at $33.11 per share.
The complaint, filed November 21, 2019, alleges that during the Class Period defendants made false and misleading statements and/or failed to disclose adverse information regarding Grubhub’s business and prospects. Specifically, defendants failed to disclose, among other things, that: (i) customer orders were actually declining, despite the massive investments the Company had made to spur demand for and use of its platform; (ii) Grubhub’s new customer additions were generating significantly lower revenues as compared to historic cohorts because these customers were more prone to using competitor platforms; (iii) Grubhub’s vaunted business model under which it secured exclusive restaurant partnerships had failed, and Grubhub needed to engage in the same aggressive non-partnered sales tactics embraced by its competitors to generate significant revenue growth; (iv) Grubhub was required to spend substantial additional capital in order to grow revenues and retain market share in the face of heightened competitive dynamics and market saturation, eviscerating the Company’s profitability; and (v) Grubhub was tracking tens of millions of dollars below its revenue and earnings guidance and such guidance lacked any reasonable basis.
For more information on the Grubhub class action go to: https://bespc.com/grub
Aurora Cannabis, Inc. (NYSE: ACB)
Class Period: September 11, 2019 to November 14, 2019
Lead Plaintiff Deadline: January 21, 2020
On November 14, 2019, the Company released an earnings report in which it reported a 24% sequential decline in revenue of C$75.3 versus C$98.9 in the previous quarter. In addition to this decline in revenue, the Company also announced that plans to finalize construction of additional grow facilities in both Denmark and Canada have been delayed.
On this news, the Company’s share price fell $0.56, or nearly 17%, to close at $2.73 per share on November 15, 2019.
The complaint, filed on November 21, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that Aurora’s revenue would decline in its first quarter of fiscal 2020 ended September 30, 2019; (2) that the Company would halt construction on its Aurora Nordic 2 and Aurora Sun facilities; and (3) that as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
For more information on the Aurora Cannabis class action go to: https://bespc.com/acb
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
