Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against KushCo Holdings, Inc. (KSHB)

NEW YORK, May 01, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against KushCo Holdings, Inc. (“KushCo” or the “Company”) (KSHB) in the United States District Court for the Central District of California on behalf of those who purchased or acquired the securities of KushCo between  July 13, 2017 through April 9, 2019,, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company made material accounting errors in connection with its acquisitions of CMP Wellness LLC, Summit Innovations, LLC, and The Hybrid Creative; (2) the Company’s previously issued financial statements for the fiscal years ended August 31, 2018 and August 31, 2017 could not be relied upon; (3) the Company’s net loss for the fiscal year ended August 31, 2018 was more than twice as high than previously reported; (4) the Company and its management’s assurances that its financial statements for those fiscal years and periods were accurate and fairly reported could not be relied upon; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the July 1, 2019 lead plaintiff motion deadline.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

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