CNTTF - Kaplan Fox Updates Investors On Investigation Of CannTrust Holdings Inc. (CTST)
NEW YORK, July 31, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) continues to investigate claims on behalf of investors who purchased shares of CannTrust Holdings Inc. ("CannTrust" or the "Company") (NYSE: CTST; OTC: CNTTF).
On July 23, 2019, after the close of trading, The Globe and Mail (www.theglobeandmail.com/business) published an article titled "CannTrust chairman, CEO were informed in November [2018] of unlicensed cannabis growing, e-mails show; Emails seen by the Globe show chairman Eric Paul and CEO Peter Aceto were made aware of growing rooms about seven months before Health Canada" uncovered the regulatory breach.
On July 24, 2019, after the opening of trading, CannTrust shares declined approximately 22% on the NYSE on heavy volume.
On July 25, 2019, CannTrust announced "senior management changes and other interim actions based on the ongoing investigation being undertaken by a special committee (the "Special Committee") of its board of directors (the "Board of Directors")."
According to the Company's press release, "[t]he investigation into the Company's non-compliance with Health Canada regulations and ancillary matters uncovered new information that has resulted in a determination by the Board to terminate with cause CannTrust CEO Peter Aceto. In addition, the Board of Directors demanded the resignation of the Company's Chair Eric Paul and he complied."
On July 25, 2019, CannTrust stock declined approximately 4%.
On July 31, 2019, the Company announced that the Special Committee "has retained Greenhill & Co. Canada Ltd. as the Special Committee's financial advisor, to assist in a review of strategic alternatives. These alternatives could include, among other things, a sale of the Company or a portion thereof, a strategic investment, a business combination, changes to the Company's operations or strategy, or continuing to execute on the Company's current business plan."
If you invested in CannTrust between November 14, 2018 and July 12, 2019 (the "Class Period") and suffered losses you are included in the putative class of investors.
If you are a member of the proposed Class, you may move the court no later than September 9, 2019 to serve as a lead plaintiff for the proposed Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
If you purchased CannTrust shares on the New York Stock Exchange, and would like to discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: jcampisi@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
SOURCE Kaplan Fox & Kilsheimer LLP