Canopy Growth(CGC) GlobeNewswire News Room·2025-04-26 13:20Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Canopy Growth Corporation for alleged violations of federal securities laws, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by June 3, 2025 [2][4]. Group 1: Allegations Against Canopy Growth - The complaint alleges that Canopy Growth and its executives made false and misleading statements regarding the company's financial health and cost management, particularly related to the Claybourne product launch and Storz & Bickel vaporizer devices [4]. - Canopy incurred significant costs associated with the production of Claybourne pre-rolled joints, which negatively impacted gross margins and overall financial results [4]. - The company overstated the effectiveness of its cost reduction measures and downplayed issues affecting gross margins, leading to materially false public statements [4]. Group 2: Financial Results and Market Reaction - On February 7, 2025, Canopy reported a gross margin decrease of 400 basis points to 32% in Q3 2025, primarily due to costs related to the Claybourne product launch and increased indirect costs from Storz & Bickel devices [5]. - Canopy reported a wider-than-expected loss of C0.48 per share loss estimated by analysts [5]. - Following the announcement of these financial results, Canopy's share price fell by 2.02 per share on February 7, 2025 [7].