On or around 03/02/2020 (Date of last review)
Filing Date: November 26, 2019
According to the Complaint, HEXO is a consumer-packaged goods cannabis company that, together with its subsidiaries, produces, markets, and sells cannabis for both recreational and medical use in Canada and abroad.
The Complaint alleges that Defendants misled investors throughout the Class Period by making materially false and/or misleading statements, as well as failing to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors that: (1) HEXO’s reported inventory was misstated as the Company was failing to write down or write off obsolete product that no longer had value; (2) HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; and (4) 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 February 25, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiffs and Counsel.
Company & Securities Information
Defendant: HEXO Corp.
Industry: Biotechnology & Drugs
Ticker Symbol: HEXO
Company Market: New York SE
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
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First Identified Complaint
Ronnie Perez, et al. v. HEXO Corp., et al.
COURT: S.D. New York
DOCKET #: 19-CV-10965
JUDGE: Hon. Naomi Reice Buchwald
DATE FILED: 11/26/2019
CLASS PERIOD START: 01/25/2019
CLASS PERIOD END: 11/15/2019
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Hagens Berman Sobol Shapiro LLP (NY)
First Identified Complaint (FIC) Filings:
Class Action Complaint for Violation of the Federal Securities Laws
Memorandum and Order
U.S. District Court Civil Docket
—Reference Complaint Complaint Related Data is not available
Related District Court Filings
—Related District Court Filings Data is not available