NEW YORK, NY / ACCESSWIRE / May 6, 2019
/ Faruqi & Faruqi, LLP, a leading national securities
law firm, reminds investors in KushCo Holdings, Inc. ("KushCo" or
the "Company")(Other OTC: KSHB) of the July 1, 2019 deadline to
seek the role of lead plaintiff in a federal securities class
action that has been filed against the Company.
If you invested inKushCo stock or options between July 13, 2017 and April 9, 2019 and would like to discuss your legal rights, clickhere: www.faruqilaw.com/KSHB. Thereis no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Telephone: (877)
247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased KushCo securities between July 13, 2017 and April 9, 2019 (the "Class Period"). The case, May v. KushCoHoldings, Inc. et al., No. 19-cv-00798 was filed on April 30, 2019, and has been assigned to none yet.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (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; and (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.
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, KushCo's share price fell from $5.80 per share on April 9, 2019 to a closing price of $5.35 on April 10, 2019: a $0.45 or a 7.76% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding KushCo's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
SOURCE: Faruqi & Faruqi, LLP
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