RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Aphria Inc. (“Aphria” or the “Company”) (NYSE: APHA) securities between July 17, 2018 and December 4, 2018, inclusive (the “Class Period”).
Aphria shareholders may, no later than February 4, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Aphria and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (1) the Latin American assets acquired by Aphria lacked adequate licenses to operate and were overvalued; (2) the acquisition of the Latin American assets would enrich Aphria’s Chief Executive Officer and other insiders at the expense of shareholders; and (3) as a result of the foregoing, the defendants’ positive statements about Aphria’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
The Class Period commences on July 17, 2018, when Aphria announced its plans to acquire “industry-leading companies in Colombia, Argentina, Jamaica and a right of first offer and refusal in respect of Brazil through a definitive share purchase agreement with Scythian Biosciences, Inc.”
On December 3, 2018, Quintessential Capital Management and Hindenburg Research published a report alleging, among other things, that Aphria’s recent acquisitions in Latin America were part of a series of transactions designed to enrich Aphria insiders and that these acquisitions lacked established operations and/or licenses to operate in the cannabis industry. Following this news, Aphria’s share price fell $1.85 per share, or over 23%, to close at $6.05 per share on December 3, 2018.
Then, on December 4, 2018, Aphria denied the claims made in the report stating, among other things, that it had received “financial advice and a fairness opinion from Cormark Securities Inc., [Aphria]’s independent and qualified financial advisor, that the consideration to be offered by Aphria in respect of the transaction was fair from a financial point of view, to Aphria.” Following this news, Aphria’s share price fell $1.54 per share, or over 25%, to close at $4.51 per share on December 4, 2018.
If you are a member of the class, you may, no later than February 4, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.