SAN FRANCISCO, March 23, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Cronos Group Inc. (NASDAQ: CRON) who have suffered losses in excess of $250,000 to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Class Period: May 9, 2019 - Mar. 2, 2020
Lead Plaintiff Deadline: May 11, 2020
Sign Up: www.hbsslaw.com/investor-fraud/CRON
Contact An Attorney Now: CRON@hbsslaw.com
844-916-0895
Cronos Group Inc. (CRON) Securities Class Action:
The complaint alleges that, while touting Cronos’ revenue growth, Defendants concealed that Cronos engaged in significant transactions and improperly recognized revenue from them. According to the complaint, Cronos also misstated the value of its inventory in its financial statements.
The market began to learn the truth on Feb. 24, 2020, when Cronos announced it would delay its Q4 and FY 2019 earnings release and conference call, previously scheduled for Feb. 27, 2020.
Then, on Mar. 2, 2020, Cronos announced that its Audit Committee was reviewing the Company’s recognition of revenue from several bulk resin transactions made through its wholesale channel. Cronos also said it expected: (1) a material inventory write-down; (2) a material decrease in gross profit; and, (3) a material increase in operating loss.
Thereafter, on Mar. 17, 2020, Cronos announced it will restate previously issued financial statements for Q1 – Q3 2019 to eliminate revenues recognized from certain wholesale transactions. These disclosures sent the price of Cronos shares sharply lower.
On Mar. 20, 2020, MarketWatch reported that the SEC requested that Cronos retain and preserve all records about revenue recognition related to bulk-resin purchases and wholesale sales of biomass and other products. This news sent the price of Cronos shares sharply lower again.
“We’re focused on investors’ losses and proving Cronos misled investors about its reported revenue and inventory,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Cronos and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Cronos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CRON@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895