Shareholder Alert: Robbins LLP Announces Aurora Cannabis Inc. (ACB) Sued for Misleading Shareholders
November 26 2019 - 2:27PM
Business Wire
Shareholder rights law firm Robbins LLP announces that a
purchaser of Aurora Cannabis Inc. (NYSE: ACB) filed a class action
complaint against the Company for alleged violations of the
Securities Exchange Act of 1934 between September 11, 2019 and
November 14, 2019. Aurora produces and distributes medical cannabis
products.
If you suffered a loss as a result of Aurora' misconduct, click
here.
Aurora Cannabis Inc. (ACB) Accused of Misleading
Shareholders
According to the complaint, in September 2019, Aurora filed its
2019 Annual Report, touting its continued year-over-year and
quarter-over-quarter growth and stating that "[Aurora] expects
adjusted EBITDA to continue to improve in the future due to higher
sales, improved gross margins, and prudent SG&A growth." To
sustain this growth, Aurora also touted its ever-increasing
capacity for production through its two largest facilities of
Aurora Sun and Aurora Nordic 2. Contrary to these representations,
on November 14, 2019, Aurora released first quarter 2020 results
that revealed a 25% sequential decline of sales, with consumer
cannabis revenue falling by 33%. On the same day, Aurora also
released its Corporate Action Plan, which revealed a CA$190 million
reduction in capital expenditures and a halt in construction of its
Aurora Nordic 2 and Aurora Sun facilities. On this news, Aurora's
share price fell 17%, to close at $2.73. Then, on November 18,
MarketWatch published an article acknowledging "investor trust
could be a real issue after Aurora's optimistic statement before
Thursday's disappointment." On this news, Aurora's share price fell
another 16%, further damaging investors.
Aurora Cannabis Inc. (ACB) Shareholders Have Legal
Options
Contact us to learn more: Leo Kandinov (800) 350-6003
lkandinov@robbinsllp.com Shareholder Information Form
Robbins LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action
lawsuits, and has helped its clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. Click here to receive free alerts from Stock Watch when
companies engage in wrongdoing.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: https://www.businesswire.com/news/home/20191126005767/en/
Leo Kandinov Robbins LLP 5040 Shoreham Place San Diego, CA 92122
lkandinov@robbinsllp.com (619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com
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