Grabar Law Office has filed a federal class action on behalf of purchasers of the common stock of iAnthus Capital Holdings, Inc. (OTCMKTS: ITHUF) who purchased or otherwise acquired the Company’s common stock between May 14, 2018 and April 6, 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’ made materially false and misleading statements concerning the withholding, escrow and intended use of $5,722,222.22 in proceeds in a 2018 Debenture Agreement and Amended Debenture Agreement which were publicly disclosed On April 6, 2020. The members of the Class reasonably relied on Defendants’ materially false and misleading statements concerning the existence of the escrowed funds to protect against an event of default in connection with the Company’s interest obligations to GGP. If such funds had been exhausted and/or were otherwise unavailable for payment of certain March 2020 interest payments, Defendants intentionally, or recklessly, failed to disclose such information rendering the earlier statements concerning the availability of the escrowed funds materially false and misleading.
The members of the Class, who relied upon Defendants’ Class Period statements concerning the availability of escrowed funds to protect against a default under the agreements with GGP and/or were ignorant of the unavailability of the escrowed funds, were injured when the price of iAnthus common stock dropped approximately 62% upon disclosure of the March 31, 2020 default.
A copy of the complaint can be viewed here: iAnthus Complaint – File Stamped
An article about the case can be viewed here: Cannabis Firm Using Crisis To Hide Shortfall, Investors Say – Law360
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