NEW YORK, July 29, 2019 /PRNewswire/ -- Bernstein
Liebhard LLP, a nationally acclaimed investor rights law firm,
announces that a securities class action lawsuit has been filed on
behalf of shareholders of CannTrust Holdings Inc., ("CannTrust" or
the "Company") (NYSE: CTST) between November
14, 2018 and July 12, 2019,
inclusive (the "Class Period"). The lawsuit filed in
the United States District Court
for the Southern District of New
York seeks to recover damages for CannTrust investors under
the Securities Exchange Act of 1934.
If you purchased CannTrust securities, and/or would like to
discuss your legal rights and options please visit CannTrust
Shareholder Class Action or contact Matthew
E. Guarnero toll free at (877) 779-1414 or
MGuarnero@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court
no later than September 9, 2019. A
lead plaintiff is a representative party acting on behalf of other
class members in directing the litigation. Your ability to share in
any recovery doesn't require that you serve as lead plaintiff. If
you choose to take no action, you may remain an absent class
member.
According to the lawsuit, throughout the Class Period,
Defendants failed to disclose that: (1) the Company was growing
cannabis in its Pelham greenhouse
while applications for regulatory approval were still pending; (2)
the Company's Pelham greenhouse
did not comply with certain regulations; (3) 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; (4) as a result, the
Company's customers would face shortages and would likely seek
product from CannTrust's competitors; and (5) as a result of the
foregoing, Defendants' positive statements about the Company's
business, operations, and prospects were materially misleading
and/or lacked a reasonable basis.
On July 8, 2019, the Company
revealed that Health Canada had discovered in an audit that
CannTrust had been growing cannabis in five unlicensed rooms
at the Niagara Facility from October
2018 to March 2019. Health
Canada also found that "inaccurate
information [was] provided to the regulator by CannTrust
employees." As a result, the Niagara Facility was "non-compliant
with certain regulations." On this news the price of CannTrust
common stock dropped from a close of $4.94 per share on Friday
July 5, 2019, to a close of 3.83 per share on Monday July 8, 2019.
Then on July 12, 2019, CannTrust
issued a press release titled "CannTrust Voluntary Hold On Product
Sales and Formation of Independent Special Committee of the Board
of Directors." The release stated that CannTrust had
instituted a voluntary hold on the sale and shipment of all of its
cannabis products while Health Canada visits and reviews its
Vaughan, Ontario manufacturing
facility.
On this news, the price of CannTrust common stock dropped from a
close of $3.11 per share on
July 11, 2019, to a close of
$2.58 per share on July 12, 2019.
If you purchased CannTrust securities, and/or would like to
discuss your legal rights and options please visit
https://www.bernlieb.com/cases/canntrustholdings-ctst-shareholder-lawsuit-class-action-fraud-stock-160/ or
contact Matthew E. Guarnero toll
free at (877) 779-1414 or MGuarnero@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over
$3.5 billion for its clients. In
addition to representing individual investors, the Firm has been
retained by some of the largest public and private pension funds in
the country to monitor their assets and pursue litigation on their
behalf. As a result of its success litigating hundreds of lawsuits
and class actions, the Firm has been named to The National Law
Journal's "Plaintiffs' Hot List" thirteen times and listed in The
Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Matthew E. Guarnero
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
MGuarnero@bernlieb.com
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SOURCE Bernstein Liebhard LLP