SAN FRANCISCO, July 11, 2019 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, with nine offices in eight cities around the country and eighty attorneys, alerts investors in Canadian cannabis producer CannTrust Holdings Inc. (NYSE: CTST) to the securities class action, Huang v. CannTrust Holdings Inc. et al., No. 1:19-cv-06396, filed in the U.S. District Court for the Eastern District of New York.
If you purchased or otherwise acquired CTST securities between November 14, 2018 and July 5, 2019 (the “Class Period”) and suffered losses you do not need to sign up to be included in the putative class of investors.
If you suffered significant losses (in excess of $50,000), you may qualify to be a lead plaintiff – one who selects and oversees the attorneys prosecuting the case. If you wish to serve as a lead plaintiff in this class action, you must move the Court no later than September 9, 2019 (the “Lead Plaintiff Deadline”). Contact Hagens Berman immediately for more information about the case and being a lead plaintiff:
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing
According to the complaint, Defendants misrepresented and concealed that the Company was growing cannabis in its Pelham, Ontario greenhouse facility in five unlicensed rooms between October and March 2018, and that the Company was providing inaccurate information to Canadian regulator Health Canada.
On July 8, 2019, the market began to learn the truth when the Company disclosed that Health Canada found that its Pelham greenhouse facility to be 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.
On this news, the Company’s share price fell $1.11, or more than 22%, to close at $3.83 per share on July 8, 2019, on unusually heavy trading volume.
“We’re focused on investors’ losses and whether the Company misrepresented and concealed its compliance with applicable laws and regulations,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding CTST should consider their options to help in the lawsuit 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 510-725-3000 or email CTST@hbsslaw.com.
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Reed Kathrein, 510-725-3000