NEW YORK, Sept. 28, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Cronos Group Inc. (“Cronos” or the “Company”) (NASDAQ: CRON) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and index under 18-cv-08406, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Cronos securities between August 21, 2018 and August 30, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Cronos securities between August 21, 2018, and August 30, 2018, both dates inclusive, you have until November 5, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Cronos is a cannabis company. It is incorporated under the laws of Ontario, Canada with its headquarters in Toronto, Ontario.
On August 21, 2018, Cronos issued a press release entitled “Cronos Group Inc. Announces Provincial Supply Agreements.” Therein, the Company, in relevant part, advised investors that Cronos had entered into distribution agreements with several Canadian provinces.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the size of Cronos’s distribution agreements with Canadian provinces announced on August 21, 2018 was relatively small; and (ii) as a result, Cronos’s public statements were materially false and misleading at all relevant times.
On August 30, 2018, Citron Research published an article entitled “Cronos: The Dark Side of the Cannabis Space,” alleging, among other things, that Cronos 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’s stock price fell $3.62 per share, or over 28%, to close at $9.12 per share on August 30, 2018, on usually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com