NEW YORK, Sept. 17, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Greenlane Holdings, Inc. ("Greenlane" or the "Company") (NASDAQ: GNLN) of the November 12, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in acquired Greenlane common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's April 2019 initial public offering ("IPO" or the "Offering"), and would like to discuss your legal rights, click here: www.faruqilaw.com/GNLN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected]
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of Florida on behalf of all those who acquired Greenlane common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company's April 2019 initial public offering. The case, Hammond v. Greenlane Holdings, Inc., No. 19-cv-81259 was filed on September 11, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that the City of San Francisco had introduced a major initiative to ban the sale of e-cigarette products across three major cities and prohibit the manufacture of products at the headquarters of Greenlane's key partner, JUUL Labs; (2) that, if approved, the initiative would materially and adversely impact the Company's financial results and prospects; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On April 22, 2019, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 6.45 million shares of common stock at a price of $17.00 per share. The Company received proceeds of approximately $110 million from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used for capital improvements to its warehouses and other facilities, capital expenditures relating to its information technology systems, working capital, and general corporate purposes.
On June 18, 2019, the San Francisco Board of Supervisors unanimously approved the ban on the sale and distribution of e-cigarette products within the city. It also endorsed a ban on the manufacturing of e-cigarette products on city property.
On this news, Greenlane stock fell from $13.27 on June 18, 2019 to $11.00 on June 19, 2019—a $2.27 or a 17.11% drop. The stock continued to decline over the course of the next three trading sessions, dropping $1.68 or 15.27%, to close at $9.32 on June 24, 2019.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Greenlane's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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