Investors Urge Court Not To Nix Cannabis Stock-Drop Claims
Law360 (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,...
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