According to the Complaint, Canopy Growth Corporation, together with its subsidiaries, engages in production, distribution, and sale of cannabis in Canada.
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing weak demand for its softgel and oil products; (2) as a result, the Company would be forced to take a CA$32.7 million restructuring charge due to poor sales, excessive returns, and excess inventory; and (3) due to the foregoing, Defendants’ statements about Canopy’s receivables, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 10, 2020, the Court issued an Order appointing Co-Lead Plaintiffs and Co-Lead Counsel. The Co-Lead Plaintiffs filed an amended Complaint on June 4. Defendants filed a Motion to Dismiss the amended Complaint on August 4. Plaintiffs submitted a letter requesting leave to file a second amended Complaint on September 4, and on September 14, the Court issued an Order administratively terminating the Motion to Dismiss.
On October 9, Co-Lead Plaintiffs filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on November 23.
On May 7, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On June 14, Lead Plaintiffs filed a third amended Complaint.
On February 4, 2022, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on February 7. On June 7, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.