CGC Stock News: Canopy Growth Corporation Investors Should Contact Robbins LLP for Information About Leading the CGC Class Action Lawsuit

The Allegations: Robbins LLP is Investigating Allegations that Canopy Growth Corporation (CGC) Misled Investors Regarding its Cost Reduction Measures   

According to the complaint, during the class period, 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.

What Now: You may be eligible to participate in the class action against Canopy Growth Corporation. Shareholders who want to serve as lead plaintiff for the class should contract Robbins LLP before June 3, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses. 

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. 

To be notified if a class action against Canopy Growth Corporation settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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SOURCE Robbins LLP