Cronos Group Inc. Class Action Lawsuit – CRON Investors Who Purchased, Or Otherwise Acquired, Cronos Group Seurities Between May 9, 2019 and March 2, 2020, Both Dates Inclusive, Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that a class action lawsuit has been filed against Cronos Group Group Inc. (“Cronos” or the “Company”) (NasdaqGS: CRON) and certain Cronos officers on behalf of Cronos shareholders who purchased, or otherwise acquired, Cronos securities between May 9, 2019 and March 2, 2020 (the “Class Period”).
The class action seeks to recover damages against the Cronos Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The class action complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Cronos had engaged in significant transactions for which its revenue recognition was inappropriate; (2) the foregoing would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports; and (3) as a result, the public statements of Cronos were materially false and misleading at all relevant times.
According to the class action complaint:
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, Cronos’s share price fell $0.78 per share, or 10.91%, to close at $6.37 on February 24, 2020.
Then, on March 2, 2020, after the market closed, Cronos disclosed that it had requested a 15-day extension for filing a complete Annual Report on Form 10-K with the SEC for its fourth quarter and fiscal year 2019. Cronos attributed the delay to a ‘review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.’
On this news, Cronos’s share price fell an additional $0.70 per share, or 11.63%, to close at $5.32 per share on March 3, 2020.
Are You A Cronos Group Investor Who Purchased, Or Otherwise Acquired, CRON Securities During The Class Period and Suffered Losses?
Cronos investors who purchased, or otherwise acquired, the publicly-traded securities of Cronos during the Class Period between May 9, 2019 and March 2, 2020, both dates inclusive, and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to learn more about the Cronos class action lawsuit or potential legal claims.