NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired CannTrust Holdings Inc. (“CannTrust” or the “Company”) (NYSE: CTST) securities during the period from November 14, 2018 to July 12, 2019 (the “Class Period”). Investors have until September 9, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that CannTrust Holdings Inc. made materially false and/or misleading statements and/or failed to disclose that: (i) the Company was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending; (ii) the Company’s Pelham greenhouse did not comply with certain regulations; (iii) as a result, the Company was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; and (iv) as a result, the Company’s customers would face shortages and would likely seek product from CannTrust’s competitors.
CannTrust announced on July 8, 2019 that its greenhouse facility located in Ontario, Canada, was audited by Health Canada, which rated it “non-compliant.” Health Canada placed a hold on 5,200 kilograms of dried cannabis allegedly harvested from five unlicensed rooms. It will hold this cannabis until the Company is in compliance with regulations. CannTrust also announced it would hold another 7,500 kilograms of dried cannabis that it says was also produced in unlicensed rooms. On this news, CannTrust’s stock price fell $1.11 per share, or 22.5%, to close at $3.83 on July 8, 2019.
On August 1, 2019, CannTrust announced in a press release that the Ontario Securities Commission had opened an investigation into the Company.
If you acquired CannTrust securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at email@example.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 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’s website: www.kmllp.com.
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