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PHILADELPHIA, July 12, 2019 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against CannTrust Holdings Inc. (NYSE: CTST) (“CannTrust” or the “Company”) on behalf of purchasers of the Company’s securities between November 14, 2018 and July 5, 2019, inclusive (the “Class Period”).
CannTrust investors who suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or by email at firstname.lastname@example.org, to discuss this action and their legal rights and options. Additional information about this action may also be found at http://kaskelalaw.com/case/canntrust-holdings-inc/.
The shareholder class action complaint alleges that CannTrust issued a series of false and misleading statements to investors during the Class Period, and failed to disclose: (i) that the Company was growing cannabis in its Pelham greenhouse while applications for regulatory approval were still pending; (ii) that the Company’s Pelham greenhouse did not comply with certain regulations; (iii) that, as a result, the Company was reasonably likely to face an inventory hold by Health Canada until the Pelham facility becomes compliant with applicable regulations; and (iv) that, as a result, the Company’s customers would face shortages and would likely seek product from CannTrust’s competitors.
According to the complaint, on July 8, 2019, the Company disclosed that Health Canada found that its greenhouse facility in Pelham, Ontario is non-compliant with certain regulations. As a result, Health Canada placed a hold on 5,200 kilograms of dried cannabis harvested from the unlicensed rooms, along with an additional 7,500 kilograms voluntarily held by the Company, until the facility becomes compliant. Following this news, shares of the Company’s stock fell $1.11 per share, or over 22% in value, to close on July 8, 2019 at $3.83 per share.
IMPORTANT DEADLINE: Investors who purchased CannTrust’s securities during the Class Period may, no later than September 9, 2019, seek to be appointed as a lead plaintiff representative in the action.
CannTrust investors who suffered any investment loss in excess of $100,000 investing in the Company’s securities are encouraged to contact Kaskela Law LLC to discuss this action and their legal rights and options. Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.