SAN FRANCISCO, March 02, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Cronos Group Inc. (NASDAQ: CRON) who have suffered significant losses in excess of $100,000 to submit their losses now. The firm is investigating possible securities law violations, and certain investors may have valuable claims.
Relevant Holding Period: Before Mar. 3, 2020
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844-916-0895
Cronos Group Inc. (CRON) Investigation:
The investigation concerns the propriety of Cronos’ accounting and reported financial results, including its recognition and recording of revenue related to bulk resin and sales of products through the “wholesale channel” and valuing of inventory.
On Feb. 24, 2020, Cronos announced, without explanation, it would not be (i) timely filing its Q4 and FY 2019 earnings release and (ii) hosting a conference call with investors previously scheduled for Feb. 27, 2020. In response, the price of Cronos shares sharply fell.
On Mar. 2, 2020, after the market closed, Cronos revealed the existence of “a continuing 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.” The Company further stated that it expects to report for FY 2019: (1) a material inventory write-down; (2) a material decrease in gross profit; and, (3) a material increase in operating loss. This news sent the price of Cronos shares sharply lower in after-hours trading.
“We’re focused on investors’ losses and whether Cronos improperly misled investors about its revenue recognition practices and inventory accounting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Cronos and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Cronos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CRON@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895