ACB.US
id: 1158
Aurora Cannabis (ACB) Investor Settlement
Late claims are being considered for compensation, subject to approval.
D. New Jersey
Court2:19-cv-20588
Case number10/23/2018
Class period Start02/28/2020
Class period End02/27/2025
Claim deadlineAurora Cannabis (ACB) has agreed to settle $8M with investors to resolve claims over hiding revenue decline in 2019.
Outline
In 2019, Aurora Cannabis was accused of overstating its revenue, growth prospects, and progress in its construction facilities. Following this, $ACB significantly fell, and Aurora Cannabis faced a lawsuit from investors.
Timeline
- On September 11, 2019: On their annual report Aurora Cannabis underlined significant revenue growth and ongoing expansion.
- On November 14, 2019: Aurora announced its Q1 2020 results, which were lower than expected.
- On November 15, 2019: Following this disclosure, $ACB fell by 17%.
- On November 18, 2019: MarketWatch published an article criticising Aurora's management and $ACB fell further by 16%.
- On November 21, 2019: Aurora Cannabis faced a lawsuit from investors regarding their overstatements on the company's financial health.
Background
On September 11, 2019, Aurora Cannabis filed its annual report stating significant revenue growth, ongoing expansion, and a positive financial outlook. Also, the executives highlighted promising growth and financial prospects.
Despite these claims, on November 14, 2019, Aurora announced its Q1 2020 results, revealing a 25% decline in sales and a 33% drop in consumer cannabis revenue.
On November 14, 2019, Aurora Cannabis announced major changes to its plans. The company stopped building its two key facilities, Aurora Nordic 2 in Denmark and Aurora Sun in Canada. These sites were supposed to boost production. Aurora also said it would cut its spending by CAD $190M, showing a big shift in its growth plans.
After this news, $ACB dropped by 17% on November 15.
Following the initial decline, MarketWatch published an article criticising Aurora's management for a significant drop in revenue and halting construction on two facilities.
This article also caused $ACB to drop 16%.
On November 21, 2019, investors filed a lawsuit against Aurora and its executives, accusing them of misleading about the company's financial health and prospects.
What can investors expect now?
Aurora Cannabis reached an agreement with $ACB investors to settle claims over hiding revenue decline in 2019.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
11/21/2019
Lead Plaintiff Deadline
01/20/2020
Plaintiffs
Doug Daulton, Francisco Quintana, Donald S. Parrish, and Quang Ma.
Attorneys
Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C. (Roseland, NJ), Hagens Berman Sobol Shapiro LLP (Seattle, WA), Robbins Geller Rudman & Dowd LLP (Melville, NY), The Schall Law Firm (Los Angeles, CA)
Defendants
Terry Booth, and Allan Cleiren.
Judge
Hon. Brian R. Martinotti
Administrator
JND Legal Administration
Court hearing date
01/28/2025
Exclusion deadline
01/06/2025
Objection deadline
01/06/2025
Attorney fee
$2,012,500
Trades matching type
FIFO
+$8,005,000
Cash Settlement AmountFrequently Asked Questions
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11thestate?