OAKLAND, Calif.--(BUSINESS WIRE)--Cronos Group Inc. shares dropped nearly 12% after the company disclosed an Audit Committee investigation into its revenue recognition for certain product sales, and also announced it would not file its 2019 Annual Report on time. Gibbs Law Group is investigating a potential Cronos Group Class Action Lawsuit on behalf of investors who lost money in Cronos Group Inc. (NASDAQ: CRON)
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On March 2, 2020, after the close of trading, Cronos Group announced it had requested an extension from the SEC to file its 2019 10-K, and added that it can give "no assurance" that it will be able to meet the extended deadline.
The company also disclosed that the delay is due to an Audit Committee investigation into several bulk resin purchases and wholesale product sales, and whether the revenue from these transactions were appropriately recognized.
Though the review is ongoing, Cronos Group stated that it expects to report a material inventory write-down for 2019.
On this news, Cronos Group’s stocks dropped nearly 12% on March 3, 2020 to close at $5.32 per share, causing significant harm to investors.
What Should Cronos Group Investors Do?
If you invested in Cronos Group, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Cronos Group Inc. has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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