LOS ANGELES--(BUSINESS WIRE)--
Glancy Prongay & Murray LLP (“GPMâ€), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that acquired KushCo Holdings, Inc. (“KushCo†or the “Companyâ€) (OTC: KSHB) securities between July 13, 2017 and April 9, 2019, inclusive (the “Class Periodâ€). KushCo investors have until July 1, 2019 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 protected], or visit our website at www.glancylaw.com.
On April 9, 2019, KushCo issued a press release that announced the Company's decision to restate prior period financial statements for fiscal years 2017 and 2018 for non-cash items related to acquisitions of CMP Wellness, Summit Innovations and Hybrid Creative.
On this news, shares of KushCo fell $0.45, or nearly 8% to close at $5.35 on April 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) KushCo made material accounting errors in connection with its acquisitions of CMP Wellness, Summit, and Hybrid; (2) as a result, KushCo's previously issued financial statements as of and for the fiscal years ended August 31, 2018 and August 31, 2017, included in the Company's Annual Reports on Form 10-K for such periods, and financial statements as of and for the quarterly periods ended May 31, 2017, November 30, 2017, February 28, 2018, May 31, 2018 and November 30, 2018, included in the Company's Quarterly Reports on Form 10-Q for such periods, could not be relied upon; (3) KushCo's net loss for the fiscal year ended August 31, 2018, was more than twice as high than previously reported; (4) KushCo 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.
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If you purchased shares of KushCo during the Class Period you may move the Court no later than July 1, 2019 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 [email protected], 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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