The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Cronos Group, Inc. (NASDAQGM: CRON) who purchased shares between August 21, 2018 and August 30, 2018. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the Cronos lawsuit alleges that (1) the size of Cronos’ distribution agreements with the Canadian provinces was relatively small; and (2) as a result of the foregoing, Defendants’ positive statements about Cronos’ business, operations, and prospects were materially false and/or misleading, and/or lacked a reasonable basis. On August 30, 2018, Citron Research published an article entitled “Cronos: The Dark Side of Cannabis Space,” alleging, among other things, that the Company has been “deceiving the investing public by purposely not disclosing the size of its distribution agreements with provinces – unlike every other major cannabis player” and that this was because “the agreements are so small that they could never justify the premium investors are paying for the stock.” On this news, Cronos’ share price fell over 28%, to close at $9.12 per share on August 30, 2018.
Shareholders have until November 5, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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