According to the Complaint, Pyxus is an agricultural company that historically focused on purchasing, processing, and shipping tobacco to manufacturers of cigarettes and other consumer tobacco products throughout the world. In February 2018, the Company announced its plans to diversify to include cannabis products. The Company changed its name from Alliance One International, Inc. to Pyxus on September 12, 2018.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company was experiencing longer shipping cycles; (2) that, as a result, the Company’s financial results would be materially affected; (3) that the Company lacked adequate internal control over financial reporting; (4) that the Company’s accounting policies were reasonably likely to lead to regulatory scrutiny; and (5) that, 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 September 17, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. On October 31, Lead Plaintiff voluntarily dismissed the case.