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ACB.US
id: 1158

Aurora Cannabis (ACB) Investor Settlement

Late claims are being considered for compensation, subject to approval.
D. New Jersey
Court
2:19-cv-20588
Case number
10/23/2018
Class period Start
02/28/2020
Class period End
02/27/2025
Claim deadline
Aurora 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 Amount

Frequently Asked Questions

Aurora Cannabis Inc

Aurora Cannabis Inc., together with its subsidiaries, engages in the production, distribution, and sale of cannabis and cannabis-derivative products in Canada and internationally. It operates throu...

    Ticker
    ACB.US
    ISIN
    CA05156X8843
    CIK
    0001683541
    Sector
    Healthcare
    Industry
    Drug Manufacturers - Specialty & Generic
    Country
    USA
    Address
    90B Street SW, Edmonton, AB, Canada, T6X 1V8