BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased HEXO Corp. (“HEXO” or the “Company”) (NYSE: HEXO) common stock between January 25, 2019 and November 15, 2019, inclusive (the “Class Period”). HEXO investors have until January 27, 2020 to file a lead plaintiff motion.
Investors suffering losses on their HEXO investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On October 10, 2019, HEXO provided preliminary fourth quarter 2019 financial results, expecting revenue between $14.5 million to $16.5 million, well below previous guidance expecting CAD $24.8 million. The Company also withdrew its fiscal 2020 outlook.
On this news, HEXO’s share price fell $0.83, or over 22%, to close at $2.85 per share on October 10, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that 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) that HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) that HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; and (4) that as a result, HEXO’s public statements were materially false and misleading at all relevant times.
If you purchased HEXO common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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