BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Cronos Group Inc. ("Cronos" or the "Company") (NASDAQ: CRON) securities between May 9, 2019, and March 2, 2020, inclusive (the “Class Period”). Cronos investors have until May 11, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Cronos investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On February 24, 2020, Cronos stated that it would delay its fourth quarter and fiscal year 2019 earnings release and conference call, previously scheduled for February 27, 2020.
On this news, the Company’s share price fell $0.78 per share, or nearly 11%, to close at $6.37 per share on February 24, 2020, thereby injuring investors.
Then, on March 2, 2020, after the market closed, Cronos disclosed an Audit Committee review of revenue recognition of “several bulk resin purchases and sales of products through the wholesale channel.” As a result, Cronos delayed the filing of its annual report for fiscal 2019 and revealed that it expected to report a material inventory write-down for fiscal 2019.
On this news, the Company’s share price fell $0.70 per share, or over 11%, to close at $5.32 per share on March 3, 2020, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had engaged in significant transactions for which its revenue recognition was inappropriate; (2) that the foregoing would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports; and (3) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you purchased Cronos securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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