This Cannabis Company Is Facing Class Action Lawsuit For Overstating Its Subsidiary's Revenue
Portfolio Pulse from Vuk Zdinjak
Pomerantz LLP has filed a class action lawsuit against Canopy Growth Corporation (NASDAQ:CGC) for allegedly overstating its subsidiary BioSteel's revenue. The lawsuit claims that the company made false and misleading statements, had material weaknesses in internal controls, and improperly booked sales. Canopy Growth's share price has fallen significantly following the announcement of its financial results and the need to restate its financial statements.
June 26, 2023 | 12:37 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Canopy Growth Corporation faces a class action lawsuit for allegedly overstating its subsidiary's revenue, leading to a decline in its share price.
The class action lawsuit alleges that Canopy Growth Corporation made false and misleading statements, had material weaknesses in internal controls, and improperly booked sales. This has led to a decline in the company's share price, which is likely to have a negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100