Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired HEXO Corp. (“HEXO” or the “Company”) (NYSE: HEXO ) common stock between January 25, 2019 and November 15, 2019, inclusive (the “Class Period”). HEXO investors have until January 27, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to email@example.com , or visit our website at www.glancylaw.com .
On October 10, 2019, HEXO provided preliminary fourth quarter 2019 financial results, expecting revenue between $14.5 million to $16.5 million, well below previous guidance expecting CAD $24.8 million. The Company also withdrew its fiscal 2020 outlook.
On this news, HEXO’s share price fell $0.83, or over 22%, to close at $2.85 per share on October 10, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that HEXO’s reported inventory was misstated as the Company was failing to write down or write off obsolete product that no longer had value; (2) that HEXO was engaging in channel-stuffing in order to inflate its revenue figures and meet or exceed revenue guidance provided to investors; (3) that HEXO was cultivating cannabis at its facility in Niagara, Ontario that was not appropriately licensed by Health Canada; and (4) that as a result, HEXO’s public statements were materially false and misleading at all relevant times.
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If you purchased HEXO common stock during the Class Period, you may move the Court no later than January 27, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org , or visit our website at www.glancylaw.com . If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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SOURCE: Glancy Prongay & Murray LLP
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