SAN DIEGO & EDMONTON, Alberta–(BUSINESS WIRE)–Shareholder rights law firm Robbins LLP announces that a purchaser of Aurora Cannabis, Inc. (NYSE: ACB) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between October 23, 2018 and January 6, 2020. Aurora produces and distributes medical cannabis products.
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Aurora Cannabis Inc. (ACB) Accused of Misleading Shareholders
According to the complaint, throughout the relevant period, due to Aurora’s exaggerated representation of its market demand, the Company was overproducing consumer use cannabis products, leading to production inefficiencies. As a result, on November 14, 2019, Aurora released dismal fiscal first quarter 2020 financial results that revealed a revenue decline of 24% quarter-over-quarter with net income of $10.4 million, compared to net income of $104.2 million for the same quarter last year. Then, on November 29, 2019, Marijuana Business Daily reported that Germany had stopped the sale of Aurora’s medical products while German authorities investigated Aurora’s proprietary process. Following these issues, on December 21, 2019, Aurora announced the abrupt departure of its Chief Corporate Officer also described as Aurora’s “public face.” Finally, as a consequence of its poor financial condition, on January 6, 2020, Aurora announced that it would be selling one of its greenhouses to raise cash, marking the third tangible asset Aurora had decided to offload. Following all of these disclosures, Aurora shares traded at around just $1.83, representing a decline of almost 45% from its closing price of $3.29 on November 14, 2019.
Aurora Cannabis Inc. (ACB) Shareholders Have Legal Options
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