RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against Aphria Inc. (NYSE: APHA) (“Aphria”) on behalf of purchasers of Aphria securities between July 17, 2018 and December 4, 2018, inclusive (the “Class Period”).
Aphria investors who purchased securities during the Class Period may, no later than February 4, 2019, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: www.ktmc.com/aphria-securities-class-action.
According to the complaint, Aphria produces and sells medical cannabis. The Class Period commences on July 17, 2018, when Aphria announced its plans to acquire “industry-leading companies in Colombia, Argentina, Jamaica and a right of first offer and refusal in respect of Brazil through a definitive share purchase agreement with Scythian Biosciences, Inc.”
According to the complaint, on December 3, 2018, Quintessential Capital Management and Hindenburg Research published a report alleging, among other things, that Aphria’s recent acquisitions in Latin America were part of a series of transactions designed to enrich Aphria insiders and that these acquisitions lacked established operations and/or licenses to operate in the cannabis industry. Following this news, Aphria’s share price fell $1.85 per share, or over 23%, to close at $6.05 per share on December 3, 2018.
Then, on December 4, 2018, Aphria denied the claims made in the report stating, among other things, that it had received “financial advice and a fairness opinion from Cormark Securities Inc., [Aphria]’s independent and qualified financial advisor, that the consideration to be offered by Aphria in respect of the transaction was fair from a financial point of view, to Aphria.” Following this news, Aphria’s share price fell $1.54 per share, or over 25%, to close at $4.51 per share on December 4, 2018.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (1) the Latin American assets acquired by Aphria lacked adequate licenses to operate and were overvalued; (2) the acquisition of the Latin American assets would enrich Aphria’s Chief Executive Officer and other insiders at the expense of shareholders; and (3) as a result of the foregoing, the defendants’ positive statements about Aphria’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Aphria investors may, no later than February 4, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.