WILMINGTON, Del., May 06, 2020 (GLOBE NEWSWIRE) -- Rigrodsky & Long, P.A. reminds shareholders of iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (OTC QX: ITHUF) of an upcoming deadline involving a securities fraud class action lawsuit commenced against the Company.
R&L filed a complaint in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of iAnthus between May 14, 2018 and April 6, 2020, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”). If you wish to serve as lead plaintiff, you must move the Court no later than June 19, 2020.
If you purchased shares of iAnthus during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at info@rl-legal.com, or at http://rigrodskylong.com/cases-ianthus-capital-holdings-inc.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s ability to pay its interest obligations under various debenture agreements. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, in May 2018, the Company entered into the $50 million 2018 Debenture Agreement with Gotham Green Partners (“GGP”). Among other things, that agreement provided for the withholding and escrow of $5,722,222.22 from the 2018 Debenture proceeds to pay one year’s interest on the 2018 Debentures in the event of iAnthus’ inability to make its interest payments under the agreement.
Then, on September 30, 2019, iAnthus and GGP entered into the Amended Debenture Agreement, which provided an additional $20 million to the Company. The Amended Debenture Agreement included the provision from the 2018 Debenture Agreement that provided for the withholding and escrow of $5,722,222.22 to pay one year’s interest under the Amended Debenture Agreement in the event that iAnthus was unable to make the required interest payments.
Although iAnthus never disclosed that the $5.72 million in escrowed funds was not available to fund iAnthus’ interest payments, on April 6, 2020, iAnthus announced that it had defaulted on $4.4 million in interest payments to GGP under the Amended Debenture Agreement on March 31, 2020.
On this news, shares of iAnthus fell over 61%, closing at $0.179 per share on April 6, 2020, on heavy trading volume.
A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware and New York, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
Attorney advertising. Prior results do not guarantee a similar outcome.
CONTACT:
Rigrodsky & Long, P.A.
Seth D. Rigrodsky
Timothy J. MacFall
(888) 969-4242
(516) 683-3516
Fax: (302) 654-7530
info@rl-legal.com
http://www.rigrodskylong.com
