RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased CannTrust Holdings Inc. (NYSE: CTST) (“CannTrust” or the “Company”) on behalf of purchasers of the Company’s securities between November 14, 2018 and July 5, 2019, inclusive (the “Class Period”).
CannTrust shareholders may, no later than September 9, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of CannTrust 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.
The complaint alleges that CannTrust issued a series of false and misleading statements to investors during the Class Period, and failed to disclose: (i) that the Company was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending; (ii) that the Company’s Pelham greenhouse did not comply with certain regulations; (iii) that, as a result, the Company was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; and (iv) that, as a result, the Company’s customers would face shortages and would likely seek product from CannTrust’s competitors.
On July 8, 2019, the Company disclosed that Health Canada found that its greenhouse facility in Pelham, Ontario is non-compliant with certain regulations. As a result, Health Canada placed a hold on 5,200 kilograms of dried cannabis harvested from the unlicensed rooms, along with an additional 7,500 kilograms voluntarily held by the Company, until the facility becomes compliant. Following this news, shares of the Company’s stock fell $1.11 per share, or over 22% in value, to close on July 8, 2019 at $3.83 per share.
If you are a member of the class, you may, no later than September 9, 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.