Canopy Growth(CGC) Prnewswire·2025-04-05 01:48Core Viewpoint - A class action lawsuit has been filed against Canopy Growth Corporation for allegedly misleading investors regarding its cost reduction measures and financial performance during a specified period [1][2]. Allegations - The lawsuit claims that Canopy Growth Corporation failed to disclose significant costs associated with the production of Claybourne pre-rolled joints and indirect costs related to Storz & Bickel vaporizer devices, which negatively impacted the company's gross margins and overall financial results [2]. - It is alleged that the company overstated the effectiveness of its cost reduction measures while downplaying issues related to its gross margins [2]. Financial Impact - On February 7, 2025, Canopy announced disappointing financial results attributed to the costs from the Claybourne product launch and increased indirect costs, leading to a 27.24% drop in share price, closing at $2.02 [3]. Class Action Participation - Shareholders may be eligible to participate in the class action against Canopy Growth Corporation, with a deadline for lead plaintiff applications set for June 3, 2025 [4]. Company Background - Robbins LLP is noted as a leader in shareholder rights litigation, focusing on helping shareholders recover losses and improve corporate governance since 2002 [5].