WAYNE, Pa., May 9, 2014 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock CannaVEST Corp. ("CannaVEST" or the "Company") (OTC QB: CANV) between May 20, 2013 and April 3, 2014, inclusive (the "Class Period").
CannaVEST shareholders may, no later than June 23, 2014, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of CannaVEST and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/canv. You may also email Mr. Maniskas at firstname.lastname@example.org.
CannaVEST manufactures, markets, and sells products containing hemp oil, including (CBD). CBD is one of at least 65 cannabinoids found in hemp, and is non-psychoactive. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public: (i) that the Company was misrepresenting, and inflating, its sales; and (ii) that the Company was misrepresenting, and exaggerating, its amount of goodwill. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on April 3, 2014, the Company filed a Form 8-K with the U.S. Securities and Exchange Commission ("SEC") announcing that it had misreported its financial position on the Forms 10-Q for the quarters ended March 31, 2013, June 30, 2013, and September 30, 2013, and as such, the 2013 First, Second, and Third Quarter Forms 10-Q could no longer be relied upon.
On this news, shares in CannaVEST fell over 20%, closing at $25.30 per share on April 3, 2014, on unusually heavy trading volume.
If you are a member of the class, you may, no later than June 23, 2014, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP