Securities Arbitration Lawyers BlogCanntrust (CTST) Subject Of A Class Action Lawsuit
CannTrust (CTST), a publicly-traded producer of medical and recreational cannabis in Canada, is the subject of a class action lawsuit filed on behalf of shareholders who lost money investing in the company.
On July 8, 2019, news broke that CannTrust was growing cannabis in a greenhouse in Pelham, Ontario where regulatory approval was still pending. Holds were placed on the company’s inventory, and CannTrust says this will cause a product shortage. Analysts downgraded the stock.
On July 8, 2019, the stock closed down 22%, causing significant damage to shareholders.
It is alleged that CannTrust employees gave false information to regulators. And, since it was reasonably likely to incur an inventory hold until the growing facility became compliant with regulations, their positive statements about their operations were materially false and/or misleading.
CannTrust Class Period And Lead Plaintiff Deadline
Investors who owned shares of CannTrust between November 14, 2018 and July 12, 2019 (the class period) may be eligible to participate in the class action. The deadline to apply to be lead plaintiff (also known as class representative) is September 9, 2019.
CannTrust Public Offerings
In June, 2018, CannTrust closed an offering that sold more than 11 million shares of the company and raised $100 million. The offering was underwritten by Cannacord Genuity, GMP Securities LP, Echelon Wealth Partners, Bloom Burton Securities, Inc., Cormark Securities Inc., and Haywood Securities.
In May, 2019, CannTrust announced the details of a secondary offering valued at up $230 million. The offering is being underwritten by Merrill Lynch, Citigroup, RBC Capital Markets, Credit Suisse, Jefferies, and Cannacord Genuity.
Recovering Money Lost With CannTrust (CTST) Stock
If you suffered losses with CannTrust, you may be able to recover some of your losses by participating in the lawsuit.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.