BENSALEM, Pa.--(BUSINESS WIRE)--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased 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.
Investors suffering losses on their KushCo investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
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.
If you purchased shares of KushCo, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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