Shareholder Alert: Robbins LLP Reminds Investors the Lead Plaintiff Deadline is Approaching for HEXO Corp. (HEXO) Class Action
December 30 2019 - 3:44PM
Business Wire
Shareholder rights law firm Robbins LLP reminds investors that
purchasers of HEXO Corp. (NYSE: HEXO) filed a class action
complaint for alleged violations of the Securities Exchange Act of
1934 between January 25, 2019 and November 15, 2019. HEXO produces,
markets, and sells cannabis in Canada.
If you suffered a loss as a result of HEXO's misconduct, click
here.
HEXO Corp. (HEXO) Accused of Artificially Inflating Revenue
Through Channel-Stuffing
According to the complaint, in March 2019, HEXO announced its
definitive agreement to acquire Newstrike Brands Ltd., touting that
the acquisition would lead it to become one of the largest cannabis
companies in the world, and committed itself to achieve over $400
million in net revenue in FY 2020. Throughout the relevant period,
HEXO continued to positively represent the Company's financials,
consistently reporting net revenues and inventory values in the
tens of millions. However, HEXO failed to disclose that its
reported revenues had been inflated through the use of
channel-stuffing to meet its FY 2020 revenue guidance and that its
reported inventory was misstated due to failure to write-off
obsolete product. The truth of its financial situation was revealed
on October 10, 2019, when HEXO provided preliminary Q4 revenue
results that were nearly 50% lower than its previous guidance and
withdrew its previously announced FY 2020 guidance. Then, on
October 29, 2019, HEXO further disappointed investors with wider
than expected losses in Q4 2019, which included an impairment loss
of nearly CA$17 million. Following all of its disclosures, HEXO's
stock plummeted almost 58% and has yet to recover.
If you purchased HEXO Corp. (HEXO) securities between January
25, 2019 and November 15, 2019, you have until January 27, 2020, to
ask the court to be appointed lead plaintiff for the class.
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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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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