Canopy Growth Investors: July 24, 2023 Filing Deadline in Securities Class Action - Contact Lieff Cabraser

SAN FRANCISCO, CA / ACCESSWIRE / July 19, 2023 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Canopy Growth Corporation ("Canopy" or the "Company") who suffered losses from purchasing or otherwise acquiring Canopy securities (NASDAQ:CGC) between June 1, 2021 and May 10, 2023 to contact us immediately regarding pending securities fraud class action against Canopy. The deadline to apply to be a lead plaintiff is July 24, 2023.

Class Period: June 1, 2021 - May 10, 2023

Lead Plaintiff Motion Deadline: July 24, 2023

Case information: lieffcabraser.com/securities/canopy

Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358

Canopy produces and sells a diverse range of cannabis, hemp, and consumer packaged goods products for use in both medical and recreational applications.

The securities class action alleges that Canopy made false and/or misleading statements and/or failed to disclose that: (1) Canopy Growth's BioSteel Sports Nutrition Inc. ("BioSteel") business was hurting the Company's profitability because it had aged inventory and was overspending; (2) there were material weaknesses in Canopy's internal controls over financial reporting; (3) Canopy improperly booked sales of BioSteel business unit; and (4) as a result of the foregoing, the Company overstated its revenue.

On February 9, 2023, before the market opened, Canopy announced disappointing financial results for the third quarter of fiscal 2022. The Company also announced cost-reduction initiatives, and that Q3 of fiscal 2022 gross margin had been negatively impacted by lower margins in the BioSteel business largely due to the inventory write-down. On this new, the price of Canopy stock fell 17.15% to close at $2.27 per share on February 9, 2023 on elevated trading volume.

On May 10, 2023, after the market closed, Canopy announced that its audited financial statements for the fiscal year ended March 31, 2022 and the last three quarters of fiscal year 2022 should no longer be relied upon and will need to be restated. The Company disclosed that an internal review found "certain trends in the booking of sales" by BioSteel and "material misstatements" and that "the correction of the misstatements is expected to reduce certain revenues previously recognized." On this news, the price of Canopy stock fell 14.75% to close at $1.04 per share on May 11, 2023 on elevated trading volume.

On May 12, 2023, BNN Bloomberg published an article citing former BioSteel employees who described BioSteel as "a dysfunctional organization rife with overspending."

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with over 120 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.

Source/Contact

Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com

SOURCE: Lieff Cabraser Heimann & Bernstein, LLP

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