NEW YORK, Sept. 26, 2019 /PRNewswire/ -- Bernstein Liebhard, LLP, a nationally acclaimed investor rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of shareholders of Sundial Growers Inc. (NASDAQ: SNDL) ("Sundial" or the "Company") resulting from allegations that Sundial issued materially misleading information to the investing public.
On August 1, 2019, Sundial closed its initial public offering ("IPO"), in which it sold 11 million shares at $13.00 per share for gross proceeds of $143 million. In the Registration Statement for the IPO, Sundial represented to shareholders that it produces "high-quality, consistent cannabis."
The Defendants made false and misleading statements and/or failed to disclose that: (1) Sundial failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc.; (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 (C$2.5 million); and (3) as a result, defendants statements about Sundials business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Just eighteen days later, on August 19, 2019, MarketWatch reported that Zenabis Global Inc., a cannabis producer, had rejected a shipment of 554 kg of cannabis from Sundial "because it contained visible mold, parts of rubber gloves and other non-cannabis material, according to people familiar with the matter."
Since the IPO Sundial's stock price has fallen substantially below its IPO price, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than November 25, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.