Kaplan Fox Updates Investors On Investigation Of CannTrust Holdings Inc.
NEW YORK, July 24, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) continues to investigate claims on behalf of investors who purchased shares of CannTrust Holdings Inc. ("CannTrust" or the "Company") on the New York Stock Exchange, and updates investors on breaking news.
On July 23, 2019, after the close of trading, The Globe and Mail (www.theglobeandmail.com/business) published an article titled "CannTrust chairman, CEO were informed in November [2018] of unlicensed cannabis growing, e-mails show; Emails seen by the Globe show chairman Eric Paul and CEO Peter Aceto were made aware of growing rooms about seven months before Health Canada" uncovered the regulatory breach.
The Globe and Mail reported that "[b]oth the chairman and the chief executive officer of CannTrust Holdings Inc. were informed that the company was growing cannabis in unlicensed rooms about seven months before Health Canada uncovered the regulatory breach, internal e-mails show."
"The company communications, seen by The Globe and Mail, show chairman Eric Paul and CEO Peter Aceto were made aware that cannabis was being cultivated in rooms at a growing facility in Southern Ontario that had yet to be licensed by the federal regulator, and that Mr. Paul counselled staff on how to respond."
"In an e-mail dated Nov. 16, 2018, Graham Lee, CannTrust's director of quality and compliance, informed Mr. Aceto and other top executives about a Health Canada inspection that had just been completed. It had revealed several compliance breaches but missed the plants growing in unlicensed rooms. 'We dodged some bullets,' Mr. Lee wrote. '[Health Canada] did not ask about RG8E/W, which are unlicensed rooms currently full of plants."
"The e-mail outlines a number of 'current risks,' including plants growing in unlicensed rooms, the storage of cannabis in unlicensed rooms and the 'large number of lost bottles [of cannabis] we have not reported.' 'Although serious, on their own, each of these can be talked through with [Health Canada]. The concern is that together they will paint a picture with the regulator of a company not in control. We have dodged observations for items 1 and 6 despite having HC in the building,' Mr. Lee wrote."
On July 24, 2019, after the opening of trading, CannTrust shares declined as much as 19% on the NYSE on heavy volume.
If you purchased CannTrust shares on the New York Stock Exchange, and would like to discuss our investigation, please contact us by emailing [email protected] or by calling 800-290-1952.
Previously, on July 11, 2019, Kaplan Fox announced that it filed a complaint against CannTrust, Peter Aceto, the Company's CEO, Greg Guyatt, the Company's CFO, and Ian Abramowitz, the Company's former CFO alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. The action is brought on behalf of a class of all persons and entities who purchased the publicly traded common stock of CannTrust on the New York Stock Exchange ("NYSE") or any U.S.-based trading platform between November 14, 2018 and July 5, 2019, inclusive (the "Class Period").
If you are a member of the proposed Class, you may move the court no later than September 9, 2019 to serve as a lead plaintiff for the proposed Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
A copy of the complaint may be viewed at www.kaplanfox.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: [email protected]
SOURCE Kaplan Fox & Kilsheimer LLP
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