The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Cronos Group Inc. (“Cronos” or the “Company”) (NASDAQ: CRON) securities during the period from May 9, 2019 through March 2, 2020. Investors have until May 11, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Cronos had engaged in significant transactions for which its revenue recognition was inappropriate; and (ii) the foregoing would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports.
On February 24, 2020, Cronos announced that it would delay its fourth quarter and fiscal year 2019 earnings release and conference call, previously scheduled for February 27, 2020. No explanation for the delay was given. On this news, the price of Cronos shares fell $0.78, or 10.9%, to close at $6.37 per share on February 24, 2020.
On March 2, 2020, after the market closed, Cronos announced that it had requested a 15-day extension of the due date for filing of its complete Annual Report on Form 10-K with the Securities and Exchange Commission (“SEC”). The Company further revealed that the delay was a result of a “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.” On this news, the price of Cronos shares fell $0.70, or 11.6%, to close at $5.32 per share on March 3, 2020.
If you acquired Cronos securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200312005870/en/
Copyright Business Wire 2020