A securities class action has been filed in the USDC – E.D.N.Y. against Canopy Growth Corporation (WEED) (“Canopy” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Canopy securities between May 30, 2024, and February 6, 2025, both dates inclusive (the “Class Period”).
Canopy, together with its subsidiaries, produces, distributes, and sells cannabis and hemp-based products for recreational and medical purposes. The Company’s products include, inter alia, pre-rolled joints and its Storz & Bickel brand vaporizer devices.
In November 2024, Canopy announced that it had launched “award-winning California grown Claybourne brand” pre-rolled joints in Canada through an exclusive licensing agreement with Claybourne Co. (“Claybourne”).
The complaint alleges Throughout the Class Period, Defendants made materially false and misleading statements regarding Canopy’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) Canopy had incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada;
(2) the foregoing costs, in addition to certain indirect costs that Canopy incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company’s gross margins and overall financial results;
(3) accordingly, Defendants had overstated the efficacy of Canopy’s cost reduction measures and the health of its gross margins while downplaying issues with the same; and
(4) as a result, Defendants’ public statements were materially false and misleading at all relevant times, thereby harming investors.
If you purchased Canopy securities during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.