Grabar Law Office Files Class Action on Behalf of Purchasers of the Common Ctock of Cronos Under the Securities Exchange Act of 1934

Grabar Law Office has filed a federal class action on behalf of purchasers (the “Class”) of the common stock of Cronos, who purchased or otherwise acquired the Company’s common stock between May 9, 2019 through March 2, 2020, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).

As alleged in the Complaint, Defendants knew, or recklessly disregarded, that the statements concerning the Company’s reported revenues, income, profits, inventory, and operating loss in the May 9, 2019 press release and Unaudited Condensed Interim Consolidated Financial Statements, and the statements concerning adequacy of the Company’s internal controls over financial reporting in the May 9, 2019 Certifications of Interim Filings, signed by Defendants Gorenstein and Barbato, were materially false and misleading because Cronos improperly recognized revenue from several bulk resin purchases and sales of products through the Company’s wholesale channel during the Class Period. As a result, on March 2, 2020, Cronos announced that it was unable to complete its financial statements for fiscal 2019 due to an ongoing review by the Company’s Audit Committee, which was being assisted by outside counsel and forensic accountants.

A copy of the Complaint can be found here: Cronos Group – Complaint (File Stamped)

To learn more about this action, contact us today!

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