NEW YORK, Oct. 15, 2019 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, reminds investors that a federal class action lawsuit has been filed against Sundial Growers Inc. ("Sundial" or the "Company") (NASDAQ: SNDL) and certain of its officers and directors, alleging violations of federal securities laws. If you purchased Sundial stock pursuant and/or traceable to the Company's initial public offering (IPO) on or about August 1, 2019, you are encouraged to contact Scott+Scott attorney Joe Pettigrew at (844) 818-6982 for more information. The lead plaintiff deadline is November 25, 2019.
The lawsuit alleges that Defendants misled investors by failing to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to a certain customer, Zenabis Global Inc. ("Zenabis"); and (2) due to material quality issues, Zenabis had to return or reject a total of 554 kg of cannabis to Sundial, valued at approximately U.S. $1.9 million.
On August 16, 2019, Marketwatch published an article that stated, in part, that the "newest cannabis company on Wall Street, Sundial Growers Inc., sold a half ton of pot that was returned by corporate buyer Zenabis Global Inc. because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter. The attempted sale would be the equivalent of 10% of Sundial's total second-quarter cannabis sales of five metric tons."
On September 25, 2019, the day the action was filed, Sundial's stock closed at $5.61 per share, representing a 56.8% decline from the $13 per share IPO price.
What You Can Do
If you purchased Sundial stock in or traceable to the Company's IPO, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at firstname.lastname@example.org, or visit the Sundial page on our website https://scott-scott.com/case/sundial-growers-inc/.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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