CGC Investors Have Opportunity to Lead Canopy Growth Corporation Securities Fraud Lawsuit

LOS ANGELES, June 20, 2023

Class Period: May 31, 2022 – May 10, 2023
Lead Plaintiff Deadline: July 24, 2023

If you wish to serve as lead plaintiff of the Canopy Growth lawsuit, you can submit your contact information at www.glancylaw.com/cases/Canopy-Growth-Corporation-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On May 10, 2023, after the market closed, Canopy Growth announced that its audited consolidated financial statements for the fiscal year ended March 31, 2022 and the quarters ended June 30, 2022, September 30, 2022 and December 31, 2022 should no longer be relied upon, and would need to be restated. The Company also disclosed that it "identified certain trends in the booking of sales by the [BioSteel Sports Nutrition Inc.] business unit for further review." The Company specified that "although the BioSteel Review remains ongoing, the Company has preliminarily identified material misstatements" and that "the correction of the misstatements is expected to reduce certain revenues previously recognized."

On this news, Canopy Growth's stock price fell $0.18, or 14.6%, to close at $1.04 per share on May 11, 2023, on unusually heavy trading volume.

The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors: (1) that there were material weaknesses in the Company's internal controls over accounting and financial reporting; (2) that, as a result, the Company improperly booked sales of its BioSteel business unit; (3) that, as a result, the Company's revenue was overstated; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.