PHILADELPHIA,, March 17, 2020 /PRNewswire/ -- //PRNewswire// -- Kehoe Law Firm, P.C. is investigating securities claims on behalf of Cronos Group Inc. ("Cronos" or the "Company") (NasdaqGS: CRON) shareholders that purchased, or otherwise acquired, CRON common stock between May 9, 2019 and March 2, 2020, both dates inclusive (the "Class Period").
On March 11, 2020, a class action lawsuit was filed against Cronos Group Inc. and certain Cronos officers in United States District Court, Eastern District of New York.
The class action lawsuit seeks to recover damages against the Cronos Defendants for alleged violations of the federal securities laws and alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Cronos had engaged in significant transactions for which its revenue recognition was inappropriate; (2) the foregoing would foreseeably necessitate reviews that would delay the Company's ability to timely file its periodic reports; and (3) as a result, the public statements of Cronos were materially false and misleading at all relevant times.
According to the class action complaint:
On February 24, 2020, Cronos stated that it would delay its fourth quarter and fiscal year 2019 earnings release and conference call, previously scheduled for February 27, 2020.
On this news, Cronos's share price fell $0.78 per share, or 10.91%, to close at $6.37 on February 24, 2020.
Then, on March 2, 2020, after the market closed, Cronos disclosed that it had requested a 15-day extension for filing a complete Annual Report on Form 10-K with the SEC for its fourth quarter and fiscal year 2019. Cronos attributed the delay to a 'review by the Audit Committee of the Company's Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.'
On this news, Cronos's share price fell an additional $0.70 per share, or 11.63%, to close at $5.32 per share on March 3, 2020. [Emphasis added.]
Cronos Group Investors Who Purchased, Or Otherwise Acquired, CRON Securities During The Class Period and Suffered Losses Greater Than $50,000
Cronos investors who purchased, or otherwise acquired, the publicly-traded securities of Cronos during the Class Period between May 9, 2019 and March 2, 2020, both dates inclusive, and suffered losses greater than $50,000 are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to learn more about the Cronos securities investigation, class action lawsuit or potential legal claims.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion dollars on behalf of institutional and individual investors.
SOURCE Kehoe Law Firm, P.C.