Investors Urge Court Not To Nix Cannabis Stock-Drop Claims
By Sarah Jarvis (April 27, 2020, 10:22 PM EDT) -- A proposed class of investors in a cannabis supply business urged a California federal court not to toss its fraud claims against the company, saying the company knowingly filed incorrect financial statements to hide about $13 million in losses.
The investors alleged Friday that California-based KushCo Holdings Inc. and its auditor, RBSM LLP, understated KushCo's total net losses from July 2017 to April 2019 by 59%. Instead of its actual net losses of $31.3 million, KushCo recorded net losses of just $18.3 million, and the company's stock price dropped nearly 8% to $5.35 after the company disclosed its false financial statements,...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!