Company: CannTrust Holdings Inc.
Class Period: November 14, 2018 — July 5, 2019
Court: U.S.D.C. – Southern District of New York
Deadline: September 9, 2019
A shareholder class action lawsuit has been filed against CannTrust Holdings Inc. (NYSE: CTST) (“CannTrust” or the “Company”) on behalf of purchasers of the Company’s securities between November 14, 2018 and July 5, 2019, inclusive (the “Class Period”).
The shareholder class action complaint alleges that CannTrust issued a series of false and misleading statements to investors during the Class Period, and failed to disclose: (i) that the Company was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending; (ii) that the Company’s Pelham greenhouse did not comply with certain regulations; (iii) that, as a result, the Company was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; and (iv) that, as a result, the Company’s customers would face shortages and would likely seek product from CannTrust’s competitors.
According to the complaint, on July 8, 2019, the Company disclosed that Health Canada found that its greenhouse facility in Pelham, Ontario is 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. Following this news, shares of the Company’s stock fell $1.11 per share, or over 22% in value, to close on July 8, 2019 at $3.83 per share.
CannTrust investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or by completing the information form on this page, to discuss this action and their legal rights and options.