SAN DIEGO & ONTARIO, Canada--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of CannTrust Holdings Inc. (NYSE: CTST) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between November 14, 2018 and July 5, 2019. CannTrust produces and distributes medical and recreational cannabis in Canada.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/canntrust-holdings-inc/
CannTrust Accused of Misleading Investors
According to the complaint, in December 2018, CannTrust disclosed its expansion plans in Pelham, Ontario. By April 2019, CannTrust announced that its greenhouse in Pelham, Ontario was fully licensed, stating that it was confident "[its] processes meet and exceed regulatory standards" and touting that this expansion would meet its plan to reach 50,000kg of capacity in its harvest. However, these statements were deliberately misleading as they omitted the material adverse facts that CannTrust was growing cannabis in its Pelham greenhouse while its application for regulatory approval was still pending. In July 2019, CannTrust revealed that its Pelham greenhouse was determined non-compliant with regulations and that it had been growing cannabis in unlicensed rooms, which led to a hold on inventory by Health Canada causing product shortages for CannTrust's customers and patients. On this news, the stock fell $1.11, more than 22%, to close at $3.83. The stock has yet to recover.
CannTrust Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, email@example.com or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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