Investors Urged to Act Before Canopy Growth Lawsuit Deadline
Glancy Prongay & Murray LLP reminds investors of the crucial June 3, 2025 deadline to file a lead plaintiff motion in the class action lawsuit on behalf of those who purchased or otherwise acquired Canopy Growth Corporation (“Canopy” or the “Company”) CGC securities between May 30, 2024, and February 6, 2025, inclusive (the “Class Period”).
IF YOU EXPERIENCED A LOSS FROM YOUR CANOPY INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIAL CLAIMS UNDER FEDERAL SECURITIES LAWS.
Recent Developments and Impacts
On February 7, 2025, Canopy reported its third quarter fiscal year 2025 financial results, which fell short of analysts’ expectations. The Company disclosed a 400-basis-point decrease in gross margin to 32%, attributed to the increased costs linked to the launch of Claybourne infused pre-rolls in Canada and indirect costs associated with Storz & Bickel vaporizer devices.
Following this announcement, Canopy’s stock price declined by $0.76, or 27.3%, to close at $2.02 per share on February 7, 2025, negatively impacting investors.
Lawsuit Overview
The class action complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements while failing to disclose adverse facts regarding the Company’s business, operations, and prospects. Specifically, the complaint outlines that:
- Canopy incurred significant costs in producing Claybourne pre-rolled joints in relation to its Canadian launch;
- These costs, along with indirect costs linked to Storz & Bickel vaporizers, were expected to profoundly impact the Company’s gross margins and overall financial performance;
- Defendants overstated the effectiveness of cost-reduction measures and the health of gross margins, while minimizing ongoing issues;
- Consequently, Defendants’ positive representations about the Company’s operations and future prospects proved materially misleading.
If you purchased or acquired Canopy securities during the Class Period, you may file a request with the Court by June 3, 2025, to be appointed as a lead plaintiff in the class action lawsuit.
Contact for Participation and Inquiries
For more information about this legal action or any questions regarding your rights or interests, please reach out to:
Charles Linehan, Esq.
Glancy Prongay & Murray LLP
1925 Century Park East, Suite 2100
Los Angeles, California 90067
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number, and the number of shares purchased.
To participate in the class action, you need not take any action at this time; you may choose your own counsel or opt to remain an absent member of the action.
This press release may be considered Attorney Advertising in some jurisdictions under applicable law and ethical rules.
View the source version on businesswire.com:
https://www.businesswire.com/news/home/20250416343436/en/
Glancy Prongay & Murray LLP
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
