Class Action Lawsuit Filed Against Canopy Growth Corporation

The Law Offices of Frank R. Cruz have announced a class action lawsuit on behalf of investors who purchased Canopy Growth Corporation (“Canopy” or the “Company”) CGC securities between May 30, 2024, and February 6, 2025 (the “Class Period”). Investors have until June 3, 2025 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR CANOPY GROWTH CORPORATION (CGC) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM IN THE ONGOING SECURITIES FRAUD LAWSUIT.

Interested parties can also reach the Law Offices of Frank R. Cruz via email at [email protected] or by telephone at (310) 914-5007. More information is available on their website at www.frankcruzlaw.com.

Incident Overview

On February 7, 2025, Canopy disclosed its third-quarter fiscal year 2025 financial results, significantly missing consensus estimates. The Company reported a 400 basis point reduction in its gross margin to 32%, attributing this decline to increased costs associated with the Claybourne infused pre-roll launch in Canada and higher indirect costs from Storz & Bickel vaporizer devices.

Following this announcement, Canopy’s stock price dropped by $0.76, or 27.3%, closing at $2.02 per share on February 7, 2025, adversely affecting investors.

Details of the Lawsuit

The class action complaint alleges that during the Class Period, the Defendants made materially false or misleading statements and omitted material facts regarding Canopy’s business operations and future prospects. Specifically, it is claimed that they failed to disclose that:

• (1) Canopy incurred substantial costs in producing Claybourne pre-rolled joints linked to the product launch in Canada;
• (2) These costs, along with additional indirect expenses from Storz & Bickel, were expected to negatively impact the Company’s gross margins and financial performance;
• (3) Thus, the Defendants overstated the effectiveness of Canopy’s cost-cutting measures and misrepresented the health of its gross margins; and
• (4) Consequently, the positive statements made about Canopy’s business and future lacked a reasonable basis.

Next Steps for Affected Investors

If you purchased Canopy securities and want to learn more about this action, or have any questions about your rights or interests related to these issues, please click HERE or reach out to:

Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250414074367/en/

Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com