NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-aurora-cannabis-inc-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of Aurora Cannabis Inc. (NYSE:ACB) securities during the period between October 23, 2018 and January 6, 2020 (the “Class Period”). This action was filed in the District of New Jersey and is captioned Warren v. Aurora Cannabis Inc., et al., No. 20-cv-00555.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Aurora securities during the Class Period to seek appointment as lead plaintiff in the Aurora class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Aurora class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Aurora class action lawsuit. An investor’s ability to share in any potential future recovery of the Aurora class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Aurora class action lawsuit, you must move the Court no later than 60 days from November 21, 2019. If you wish to discuss the Aurora class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-aurora-cannabis-inc-class-action-lawsuit.html.
The Aurora class action lawsuit charges Aurora and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Aurora markets and sells cannabis, hemp, cannabis devices, and related products in the cannabis consumer and medical markets. Aurora shares began trading on the NYSE on October 23, 2018.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and prospects. Specifically, defendants failed to disclose that they had materially overstated the demand and potential market for Aurora’s consumer cannabis products; that Aurora’s ability to sell products had been materially impaired by extraordinary market oversupply, including oversupply that was the product of Aurora’s own aggressive ramp in production capacity; that Aurora’s spending growth and capital commitments were slated to exceed its revenue growth; that, as a result, Aurora faced heightened liquidity concerns and the need to significantly curtail capital expenditures, including the cessation of development of the Company’s Aurora Sun and Aurora Nordic 2 facilities; that Aurora had violated German law mandating that companies receive special permission to distribute medical products exposed to regulated irradiation techniques, threatening its primary European market access; and that all of the foregoing had negatively impacted the Company’s business, operations, and prospects and impaired the Company’s ability to achieve profitability. As a result of this information being withheld from the market, the Company’s securities traded at artificially inflated prices throughout the Class Period, with its stock price reaching a high of more than $10 per share.
On November 14, 2019, the Company announced disappointing results for the first quarter of fiscal 2020, reporting a 25% sequential sales decline and a 33% sequential consumer cannabis revenue decline. In addition, the Company announced that it was halting construction on its Aurora Nordic 2 facility in Denmark and was deferring final construction on its Aurora Sun facility in Medicine Hat, Alberta. On this news, the Company’s stock price fell more than 17%. On November 29, 2019, Marijuana Business Daily reported that German pharmacies were recently asked to stop the sale of Aurora’s cannabis products by German health authorities due to a method that Aurora used to protect the shelf life of the flower, which was later reported to involve irradiation techniques. Following these revelations, the price of Aurora common stock declined approximately 7%. And on December 21, 2019, Aurora issued a press release announcing that the Company’s Chief Corporate Officer would be stepping down. On this news, the price of Aurora common stock fell more than 10%.
Then, on January 6, 2020, media reports stated that the Company had listed its nine-hectare greenhouse in Exeter, Ontario, for sale for $17 million. Analysts immediately noted that the move implied significant write-downs could be on the horizon. Following these revelations, the price of Aurora common stock declined again, falling nearly 10% to close at $1.83 per share on January 7, 2020.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
