PHILADELPHIA, March 18, 2020 (GLOBE NEWSWIRE) -- Kehoe Law Firm, P.C. is investigating securities claims on behalf of Cronos Group Inc. (“Cronos” or the “Company”) (NasdaqGS: CRON) shareholders.
On March 17, 2020, Cronos announced that the Company
. . . determined, on the recommendation of the Audit Committee of the Company’s Board of Directors and after consultation with KPMG LLP, the Company’s independent registered public accounting firm, that Cronos Group’s previously issued unaudited interim financial statements for first, second and third quarters of 2019 prepared in accordance with International Financial Reporting Standards as filed on SEDAR, and with the U.S. Securities and Exchange Commission on Form 6-K, will be restated and reissued and should no longer be relied upon.
As previously announced, the Audit Committee of the Company’s Board of Directors has been conducting a review of certain bulk resin purchases and sales of products through the wholesale channel, and the restatement is being made to eliminate certain of these transactions through the wholesale channel. The Company will reduce revenue for the three months ended March 31, 2019 by C$2.5 million and the three months ended September 30, 2019 by C$5.1 million. [Emphasis added.]
On this news, shares of CRON dropped 13.93% after hours on March 17, 2020.
Cronos investors who purchased, or otherwise acquired, the publicly-traded securities of Cronos between May 9, 2019 and March 17, 2020, both dates inclusive, and suffered losses greater than $50,000 are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, myarnoff@kehoelawfirm.com,info@kehoelawfirm.com, or John Kehoe, Esq, (215) 792-6676, Ext. 801, jkehoe@kehoelawfirm.com, to learn more about the Cronos securities investigation or potential legal claims.
Additionally, CRON investors should be aware that on March 11, 2020, a class action lawsuit was filed against Cronos Group Inc. and certain Cronos officers in United States District Court, Eastern District of New York, on behalf of Cronos shareholders who purchased, or otherwise acquired, Cronos securities between May 9, 2019 and March 2, 2020 (the “Class Period”).
The class action lawsuit seeks to recover damages against the Cronos Defendants for alleged violations of the federal securities laws and alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Cronos had engaged in significant transactions for which its revenue recognition was inappropriate; (2) the foregoing would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports; and (3) as a result, the public statements of Cronos were materially false and misleading at all relevant times.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion dollars on behalf of institutional and individual investors.
