Shareholder Alert: Robbins LLP Announces Aurora Cannabis, Inc. (ACB) Sued for Misleading Shareholders
January 14 2020 - 2:57PM
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 October 23, 2018 and
January 6, 2020. 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, throughout the relevant period, due
to Aurora's exaggerated representation of its market demand, the
Company was overproducing consumer use cannabis products, leading
to production inefficiencies. As a result, on November 14, 2019,
Aurora released dismal fiscal first quarter 2020 financial results
that revealed a revenue decline of 24% quarter-over-quarter with
net income of $10.4 million, compared to net income of $104.2
million for the same quarter last year. Then, on November 29, 2019,
Marijuana Business Daily reported that Germany had stopped the sale
of Aurora's medical products while German authorities investigated
Aurora's proprietary process. Following these issues, on December
21, 2019, Aurora announced the abrupt departure of its Chief
Corporate Officer also described as Aurora's "public face."
Finally, as a consequence of its poor financial condition, on
January 6, 2020, Aurora announced that it would be selling one of
its greenhouses to raise cash, marking the third tangible asset
Aurora had decided to offload. Following all of these disclosures,
Aurora shares traded at around just $1.83, representing a decline
of almost 45% from its closing price of $3.29 on November 14,
2019.
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/20200114005785/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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