OAKLAND, Calif.–(BUSINESS WIRE)–CannTrust shares declined by over 22% on reports that regulators found the company was growing cannabis in unlicensed facilities and that CannTrust employees had given regulators false information. Gibbs Law Group is investigating a potential CannTrust Class Action Lawsuit on behalf of investors who lost money in CannTrust Holdings (NYSE: CTST) stock.
To speak privately with an attorney regarding this class action lawsuit investigation, click here.
On July 8, 2019, multiple news outlets reported that Canadian regulators found CannTrust was growing cannabis in unlicensed rooms, and that CannTrust employees had provided false information to regulators. As a result, holds were placed on CannTrust’s cannabis inventory, which will lead to temporary product shortages, according to the company. Harvest Moon Research noted that CannTrust may also have illegally exported some of the cannabis to other countries, which is “an indictable offense that could come with a prison term,” according to an article in MarketWatch.
Several analysts downgraded CannTrust’s stock, and Jeffries analyst Ryan Tomkins stated,
“The fact the company never spotted this, or indeed still doesn’t know how it happened, is a concern.”
Following this news, shares of CannTrust Holdings plummeted more than 22% to close at $3.83 on July 8, 2019, causing significant harm to investors.
If you invested in CannTrust Holdings and would like to speak privately with a securities attorney to learn more about your legal rights, visit our website or contact our securities team directly at (800) 808-5294.
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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