CGC Investors Have the Opportunity to Lead the Canopy Growth Securities Fraud Lawsuit with Faruqi & Faruqi, LLP
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements
Share
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Canopy had incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada; (2) 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; (3) 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; and (4) as a result, Defendants' public statements were materially false and misleading at all relevant times.
On February 7, 2025, during pre-market hours, Canopy issued a press release announcing its financial results for the third quarter ("Q3") of its FY 2025. Among other items, Canopy reported that its "[g]ross margin decreased by 400 basis points to 32% in [Q3 2025] compared to [the same quarter the year prior] 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[.]" These factors contributed to Canopy reporting a wider-than-anticipated Q3 2025 loss of C$1.11 per share compared to the C$0.48 per share loss estimated by analysts.
The same day, Canopy held a conference call with investors and analysts to discuss its Q3 2025 financial results. During the call, Canopy's Chief Financial Officer, Defendant Judy Hong ("Hong"), revealed that the Company's Claybourne product launch costs were "primarily attributable to [the] higher initial cost to produce Claybourne" products. Defendant Hong also disclosed that the "indirect costs" related to Storz & Bickel vaporizer devices were attributable to, inter alia, shipping costs.
On this news, Canopy's common share price fell $0.76 per share, or 27.34%, to close at $2.02 per share on February 7, 2025.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Canopy's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Canopy Growth class action, go to www.faruqilaw.com/CGC or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
15 minutes ago
- San Francisco Chronicle
A huge new café wants to change the game for S.F. Korean food
The creators of a soaring new Korean café and gathering space in San Francisco hope to spur more momentum around Korean food culture in the Bay Area. Sohn will open Aug. 16 at 2535 3rd St. in Dogpatch, the former home of bagel shop Daily Driver. Deuki Hong, a prominent Korean-American chef who's run several restaurants and bakeries in the Bay Area, is a co-founder and operator, along with managing partner Janet Lee, a San Francisco native and founding partner of Hong's Sunday Family Hospitality Group. Sohn will be a café during the day and offer workshops and events in the evenings. A retail section is stocked with Korean-American goods, from instant coffee to soap, curated by Maum, a specialty store in New York City and Los Angeles. In the U.S., those two cities, and not San Francisco, have long been known for their strong Korean food scenes. That's shifted in recent years, however, with notable local arrivals including chef Corey Lee's Michelin-starred San Ho Won in San Francisco; tofu specialist Joodooboo in Oakland; multiple locations of kalbijjim specialist Daeho; and mega-popular Korean food complex Jagalchi in Daly City. 'It's always L.A. It's always New York,' Hong said. 'It's time the Bay Area starts playing a bigger conversation in where Korean food is going in America.' Sohn will serve casual Korean-inspired fare, like a rice bowl with soy-marinated soft boiled egg with Korean herbs and chili; jook (rice porridge); and a patty melt with Korean barbecue beef and kimchi slaw ($16). Thick slices of sourdough toast ($13), courtesy of the nearby Neighbor Bakehouse, which Hong also operates, will be topped with charred avocado, pickled jalapeños and onions and drizzled with gochugaru oil. A sweet toast incorporates ricotta and housemade strawberry cheong, a Korean fruit syrup. Preserved condiments like cheong and pickles will be made in a fermentation room on site. Korean café culture, which is slowly seeping into the Bay Area through trendy drinks like the einspänner, will be a focus. Sohn will brew specialty coffee roasted in partnership with Frank La of Be Bright Coffee in Los Angeles. Expect drinks like an espresso tonic with yuja (Korean citrus) and perilla. Korean staples inspired other creations, including housemade banana oat milk lattes, an homage to the boxes of banana milk Hong and Lee drank growing up, made with espresso, matcha or hojicha. Two drinks, a soda and matcha latte, channel the flavor of the beloved Melona brand ice cream bar. The former Daily Driver space is massive and industrial, with an upstairs mezzanine that looks down onto the open kitchen. Cathie Hong, a Korean-American interior designer in the Bay Area, revamped it to feel more like a cozy, chic home, with lime-washed walls, large Noguchi hanging paper lanterns, plants and lounge areas with couches. They added 12 seats to a front counter. The owners hope Sohn (derived from the Korean word for 'hand') will be a social third space, with rotating art installations and plans to host collaboration dinners and cooking classes. They're excited to be part of a wave of openings in Dogpatch, spurred in part by the major redevelopment of Pier 70. Hong, who was born in Korea and came to the U.S. at a young age, trained in Michelin-starred kitchens before opening a slew of Bay Area food businesses, including Sunday Bird, ice cream shop Sunday Social and a café at the Asian American Museum in San Francisco and Oakland's Sunday Bakeshop, all of which have since closed. Last year, he published his second cookbook, 'Koreaworld.' Sohn. Opening Aug. 16. 2535 3rd St., San Francisco.
Business Wire
15 minutes ago
- Business Wire
DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of CTO Realty Growth
NEW YORK--(BUSINESS WIRE)-- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CTO Realty Growth, Inc. ('CTO' or the 'Company') (NYSE: CTO) and reminds investors of the October 7, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) CTO's dividends were less sustainable than Defendants had led investors to believe; (ii) the Company used deceptive and unsustainable practices to artificially inflate its AFFO and overstate the true profitability of its Ashford Lane property; (iii) accordingly, CTO's business and/or financial prospects were overstated; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times. On June 25, 2025, Wolfpack Research ("Wolfpack") published a report entitled "CTO: The B. Riley of REITs" (the "Wolfpack Report" or the "Report"), which compared CTO unfavorably to B. Riley, a financial services company that recently lost more than 90% of its value amid three years of losses, soured investments, delayed financial reports and revelations that the SEC had been investigating whether the firm gave shareholders an accurate picture of its health. Citing interviews with former employees and whistleblowers, the Wolfpack Report accused CTO of, among other things, "not generat[ing] enough cash to pay its recurring capex and cover its dividends since converting to a REIT in 2021" and instead "rel[ying] on dilution (increasing shares outstanding by 70% since December 2022) to cover a $38 million dividend shortfall from 2021 to 2024," employing a "manipulative definition of [AFFO] where they exclude recurring capex, unlike all of their self-identified shopping center REIT peers," and "us[ing] a sham loan to hide the collapse of a top tenant from shareholders at Ashford Lane." (Emphasis in original). Further, Wolfpack predicted imminent further dilution of the Company, noting that CTO has just $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter, along with approximately $12 million in additional planned capital expenditures. On this news, CTO's stock price fell $0.98 per share, or 5.42%, to close at $17.10 per share on June 25, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding CTO's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the CTO Realty Growth class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Yahoo
43 minutes ago
- Yahoo
Kapa Gold Announces Warrant Expiry Date Acceleration
Vancouver, British Columbia--(Newsfile Corp. - August 11, 2025) - KAPA GOLD INC. (TSXV: KAPA) ("Kapa" or the "Company") announces that the Company has elected to accelerate the expiry date of certain outstanding common share purchase warrants of the Company ("Warrants"), originally issued in connection with the closing of a private placement on May 19, 2022 (the "Financing"). The exercise price and expiry date of the Warrants were subsequently amended on April 8, 2024 (the "Amendments"). Pursuant to the Amendments, the Company may accelerate the expiry date of the Warrants if the closing price of the Company's common shares ("Shares") on the TSX Venture Exchange (the "TSXV") equals or exceeds C$0.25 for ten (10) consecutive trading days, to the date which is thirty (30) days following the dissemination of a news release announcing the acceleration (the "Acceleration"). As the closing price of the Shares on the TSXV has equaled or exceeded C$0.25 over each of the last ten (10) trading days ended August 7, 2025, the Company hereby provides notice of the Acceleration in accordance with the Amendments. The Company is exercising its right to accelerate the expiry date of the Warrants originally issued under the Financing to 5:00 pm (Vancouver Time) on September 10, 2025 (the "Accelerated Expiry Date"). Any Warrants remaining unexercised after the Accelerated Expiry Date will expire and be of no force and effect. The Company intends to use proceeds from the exercise of the Warrants for general administrative and working capital purposes. There is no assurance that any or all of the Warrants will be exercised. Holders may exercise the Warrants before the Accelerated Expiry Date by observing the process as described in the Warrant certificates. About Blackhawk Gold Project Blackhawk Gold Project is located in the historic Blackhawk Mining District in California, a region renowned for its gold and silver production. The mine has a long history of precious metal extraction, with several high-potential exploration targets identified. Kapa Gold is focusing on establishing a resource and developing a sustainable extraction strategy using modern techniques. About Kapa Gold Kapa Gold Inc. is a Canadian exploration company focused on advancing its portfolio of high-potential gold projects in North America. The Company's flagship project, the Blackhawk Gold Property, aims to deliver significant shareholder value through strategic exploration and development initiatives. Kapa Gold is dedicated to responsible mining, sustainable growth, and contributing positively to the communities in which it operates. To learn more, visit On behalf of the Board of Directors KAPA GOLD INC."David K. Paxton"CEO and Director For More Information Contact:Konstantine Tsakumiskon@ THIS PRESS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Information Certain statements made, and information contained herein may constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guaranteeing of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws. To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
