On July 6, 2023, Siskinds LLP filed a proposed securities misrepresentation class action in the Ontario Superior Court of Justice against Canopy Growth Corporation, its directors and senior officers, Canopy's auditor KPMG LLP and two of BioSteel Sports Nutrition Inc.'s ("BioSteel") senior officers and directors on behalf of investors who acquired Canopy's shares from May 31, 2022 to June 22, 2023.
Canopy operates in two sectors: cannabis and consumer packaged goods. One of Canopy's key consumer packaged goods businesses is its BioSteel brand of sports nutrition and hydration products, including ready-to-drink products.
The class action alleges that from May 31, 2022 to June 22, 2023, Canopy misrepresented its financial statements by, among other things, materially overstating BioSteel revenue, the goodwill attributable to the BioSteel reporting unit, and the effectiveness of its internal control over financial reporting.
The class action further alleges that Canopy publicly corrected its misrepresentations on May 10, 2023 and June 22, 2023. The class action further asserts that following these public corrections, the market value of Canopy's shares on the TSX and NASDAQ plummeted, causing investors a significant loss.
Legal Proceedings
Siskinds LLP is seeking financial compensation for all investors who acquired Canopy's shares between May 31, 2022 to June 22, 2023.
This case was initiated by Statement of Claim on July 6, 2023.
For more information, visit siskinds.com/class-action/canopygrowthcorporation (TSX: WEED; NASDAQ: CGC)
Special thanks to Shelby Cruz, summer student, who helped write this article.
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