Robbins Geller Rudman & Dowd LLP announces that a securities class action lawsuit has been filed in the District of New Jersey on behalf of purchasers of Aurora Cannabis Inc. (NYSE:ACB) securities between September 11, 2019 and November 14, 2019 (the “Class Period”). The case is captioned Wilson v. Aurora Cannabis Inc., No. 19-cv-20588, and is assigned to Judge John Michael Vazquez. The Aurora Cannabis securities class action lawsuit charges Aurora Cannabis and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Aurora Cannabis securities during the Class Period to seek appointment as lead plaintiff in the Aurora Cannabis securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Aurora Cannabis securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Aurora Cannabis securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Aurora Cannabis securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Aurora Cannabis securities class action lawsuit or have questions concerning your rights regarding the Aurora Cannabis securities class action lawsuit, please visit our website by clicking here or contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com. Lead plaintiff motions for the Aurora Cannabis securities class action lawsuit must be filed with the court no later than January 20, 2020.
Aurora Cannabis produces and distributes cannabis products. The Aurora Cannabis securities class action lawsuit alleges that during the Class Period, defendants failed to disclose that: (1) contrary to Aurora Cannabis’s representations, its revenue would decline in its first quarter of fiscal 2020; (2) Aurora Cannabis would halt construction on its Aurora Nordic 2 and Aurora Sun facilities; and (3) that, based on the foregoing, defendants’ statements about Aurora Cannabis’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. As a result of this information being withheld from the market, Aurora Cannabis securities traded at artificially inflated prices throughout the Class Period.
On November 14, 2019, Aurora Cannabis announced its results for the first quarter of fiscal 2020. Contrary to statements defendants made and released during and after Aurora Cannabis’s first quarter, the Company reported a 25% sequential sales decline, well below analyst estimates, as well as a 33% sequential consumer cannabis revenue decline. In addition, Aurora Cannabis announced that, as part of its Corporate Action Plan, it was halting construction on its Aurora Nordic 2 facility in Denmark and was deferring final construction on its Aurora Sun facility in Medicine Hat, Alberta – its facilities with the largest production capacities. That same day, Aurora Cannabis further announced an early conversion window for CA$230 million in convertible debt. On this news, Aurora Cannabis’s stock price fell more than 17%.
Then, on November 18, 2019, MarketWatch published an article entitled “Aurora Cannabis stock suffers worst day in more than five years, analyst says ‘it would be fair for investors not to believe them.’” The article cited multiple analysts, stating in relevant part that “investors had a reason for anger and distrust after the report,” “dilution from the debenture conversion could swing investor sentiment even more,” and that “[w]ith possible cash pressures evident, announcing ceased construction at facilities despite a press release just 6 weeks ago praising progression, and now EBITDA (and cash) positive looking unlikely this year, it would be fair for investors not to believe them.” On this news, Aurora Cannabis’s stock price fell more than 16%.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20191206005018/en/
Contacts:
Brian Cochran, 800-449-4900
bcochran@rgrdlaw.com
