SAN DIEGO & WAKEFIELD, Mass.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Curaleaf Holdings, Inc. (OTC: CURLF) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between November 21, 2018 and July 22, 2019. Curaleaf Holdings operates as an integrated medical and wellness cannabis operator in the United States.
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Curaleaf Holdings Accused of Violating the FD&C Act
According to the complaint, in November 2018, Curaleaf announced the launch of Curaleaf Hemp, its line of hemp-based CBD products for sale on its new website. When Curaleaf filed its 2018 financials in April 2019, it included a discussion of its marketing of these CBD products, acknowledging that its products were not approved as "drugs" for the treatment or prevention of any disease and the potential consequences that could result from any attempts to market these claims. Despite the acknowledgments, in May 2019, when Curaleaf launched its line of Bido Brand pet products, it stated in a press release that CBD had the "potential to help manage pain and anxiety" and even went on to include that "[its] human customers [were] already reaping the benefits of CBD with Curaleaf Hemp." Then, on July 22, 2019, as a result of Curaleaf's unlawful CBD product marketing and sale of unapproved and misbranded drugs on its website, the FDA sent Curaleaf a warning letter for violations of the Federal Food, Drug and Cosmetic Act. On this news, Curaleaf's stock fell 7.27% to close at $7.40 per share, and has yet to recover.
Curaleaf Holdings, Inc. (CURLF) Shareholders Have Legal Options
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