Legal Action Announced for Canopy Growth Corporation Investors

The Law Offices of Howard G. Smith have initiated a class action lawsuit for investors who acquired Canopy Growth Corporation (“Canopy” or the “Company”) CGC securities from May 30, 2024 through February 6, 2025, a period referred to as the “Class Period.” Those affected have until June 3, 2025 to file a lead plaintiff motion.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN CANOPY GROWTH CORPORATION (CGC), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Investors can reach the Law Offices of Howard G. Smith via email at [email protected], by phone at (215) 638-4847, or by visiting www.howardsmithlaw.com.

Details of the Incident

On February 7, 2025, Canopy announced its third-quarter fiscal results for 2025. The report failed to meet consensus estimates, revealing a significant drop in gross margin—down 400 basis points to 32%. The decline was attributed to rising costs related to the launch of Claybourne infused pre-rolls in Canada and an increase in indirect costs associated with Storz & Bickel vaporizer devices.

Following this announcement, Canopy’s stock price plummeted by $0.76, marking a 27.3% decrease, landing at $2.02 per share on February 7, 2025, resulting in substantial losses for investors.

Details of the Lawsuit

The filed complaint asserts that during the Class Period, Canopy’s management made materially false and misleading statements regarding the Company’s operations and financial outlook. Specifically, it alleges that the Defendants did not disclose that: (1) Canopy incurred significant production costs for Claybourne pre-rolled joints launching in Canada; (2) these costs, along with additional indirect costs for Storz & Bickel products, would severely affect the Company’s gross margins; (3) the ability of Canopy to effectively reduce costs and maintain healthy gross margins was overstated; and (4) consequently, the positive statements made by Defendants about the Company’s prospects lacked any reasonable foundation.

Learn More or Participate

If you purchased Canopy securities or have information relevant to this lawsuit, feel free to reach out for more details. You can also contact us regarding any questions related to your rights concerning this matter.

Contact details are as follows:

Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Website: www.howardsmithlaw.com.

This announcement may be regarded as Attorney Advertising in certain jurisdictions under applicable laws and ethics rules.

View the source version on businesswire.com: https://www.businesswire.com/news/home/20250411125975/en/

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com