HEXO Corp. Shareholder Class Action: January 27, 2020 Filing Deadline – Contact Lieff Cabraser
December 11 2019 - 9:00AM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been filed on behalf of
investors who purchased or otherwise acquired the securities of
HEXO Corp. (“HEXO” or the “Company”) (NYSE: HEXO) between January
25, 2019 and November 15, 2019, inclusive (the “Class Period”).
If you purchased or otherwise acquired the common stock of HEXO
during the Class Period, you may move the Court for appointment as
lead plaintiff by no later than January 27, 2020. A lead plaintiff
is a representative party who acts on behalf of other class members
in directing the litigation. Your share of any recovery in the
actions will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff Cabraser, or
other attorneys, as your counsel in the actions.
HEXO investors who wish to learn more about the litigation and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
HEXO, incorporated and headquartered in Canada, makes and sells
cannabis products for distribution to users, principally through
third-party physical and online retailers.
Based on our investigation, we believe HEXO made materially
false or misleading statements by (1) providing revenue guidance
that materially overstated HEXO’s likely revenue for 2020, (2)
overstating the number of retail locations for HEXO’s product that
would be available during the fiscal year of 2019, (3) overstating
the value of inventory, and (4) failing to disclose the Company’s
unlicensed growth of cannabis in Niagara.
After the close of markets on October 4, 2019, HEXO announced
the sudden resignation of its new Chief Financial Officer. In
response, HEXO’s stock price declined 6% to close at $3.80 on
October 7, 2019, the next trading day.
Six days later on October 10, 2019, HEXO withdrew its revenue
guidance for the fiscal year of 2020 based in part on slow
expansion of retail locations in Quebec and Ontario. That day,
HEXO’s stock price closed at $3.66, or 22% lower than the prior
day’s closing price.
On October 28, 2019 HEXO announced that it would take an
impairment charge as a result of an excess of inventory that was
caused in part by the slow expansion of retail locations in Quebec
and Ontario. HEXO’s stock declined another 6% to close at $2.52 the
next day.
Then on November 15, 2019, HEXO belatedly disclosed that it had
identified the unlicensed growth of cannabis on a HEXO property on
July 30, 2019. That day, HEXO’s stock closed at $1.79, a 5% decline
from the prior day’s closing price.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for fourteen years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs’ bar and that demonstrated unusual
dedication and creativity.” Law360 has selected Lieff Cabraser as
one of the Top 50 law firms nationwide for litigation, highlighting
our firm’s “laser focus” and noting that our firm routinely finds
itself “facing off against some of the largest and strongest
defense law firms in the world.” Benchmark Litigation has named
Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in
America.”
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
https://www.lieffcabraser.com/.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20191211005281/en/
Source/Contact for Media Inquiries Only Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP Telephone:
1-800-541-7358
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