SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP reminds investors of the upcoming deadline to move for appointment as lead plaintiff in the class action litigation on behalf of investors who purchased or otherwise acquired the common stock of HEXO Corp. (“HEXO” or the “Company”) (NYSE: HEXO) between January 25, 2019 and November 15, 2019, inclusive (the “Class Period”).
If you purchased or otherwise acquired the common stock of HEXO during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 27, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
HEXO investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
HEXO, incorporated and headquartered in Canada, makes and sells cannabis products for distribution to users, principally through third-party physical and online retailers.
Based on our investigation, we believe HEXO made materially false or misleading statements by (1) providing revenue guidance that materially overstated HEXO’s likely revenue for 2020, (2) overstating the number of retail locations for HEXO’s product that would be available during the fiscal year of 2019, (3) overstating the value of inventory, and (4) failing to disclose the Company’s unlicensed growth of cannabis in Niagara.
After the close of markets on October 4, 2019, HEXO announced the sudden resignation of its new Chief Financial Officer. In response, HEXO’s stock price declined 6% to close at $3.80 on October 7, 2019, the next trading day.
Six days later on October 10, 2019, HEXO withdrew its revenue guidance for the fiscal year of 2020 based in part on slow expansion of retail locations in Quebec and Ontario. That day, HEXO’s stock price closed at $3.66, or 22% lower than the prior day’s closing price.
On October 28, 2019 HEXO announced that it would take an impairment charge as a result of an excess of inventory that was caused in part by the slow expansion of retail locations in Quebec and Ontario. HEXO’s stock declined another 6% to close at $2.52 the next day.
Then on November 15, 2019, HEXO belatedly disclosed that it had identified the unlicensed growth of cannabis on a HEXO property on July 30, 2019. That day, HEXO’s stock closed at $1.79, a 5% decline from the prior day’s closing price.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.