Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Canopy Growth Corporation (CGC)

/EIN News/ -- NEW YORK, April 08, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of all persons or entities who purchased or otherwise acquired Canopy Growth Corporation (“Canopy” or the “Company”) (NASDAQ: CGC) securities between May 30, 2024 and February 6, 2025, both dates inclusive (the “Class Period”).

The Complaint alleges that defendants failed to disclose that: (i) Canopy had incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada; (ii) the foregoing costs, in addition to certain indirect costs that Canopy incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company’s gross margins and overall financial results; and (iii) accordingly, defendants had overstated the efficacy of Canopy’s cost reduction measures and the health of its gross margins while downplaying issues with the same.

On February 7, 2025, Canopy announced disappointing financial results “primarily due to the incremental costs related to the Claybourne infused pre-roll launch in Canada, and an increase in indirect costs of Storz & Bickel vaporizer devices[.]” On this news, Canopy’s share price fell 27.24%, to close at $2.02 on February 7, 2025.

Investors who purchased or otherwise acquired shares of Canopy should contact the Firm prior to the June 3, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.