SAN FRANCISCO, CA / ACCESSWIRE / January 26, 2020 / Hagens Berman urges investors in HEXO Corp. (NYSE:HEXO) who have suffered losses in excess of $500,000 to submit their losses now to learn if they qualify to recover their investment losses. Hagens Berman has filed a class action complaint against HEXO and its senior executives and only one day remains until the Jan. 27, 2020 lead plaintiff application deadline.
Class Period: Jan. 25, 2019 - Nov. 15, 2019
Lead Plaintiff Deadline: Jan. 27, 2020
Sign Up Now: www.hbsslaw.com/investor-fraud/HEXO
Contact An Attorney Immediately: [email protected]
844-916-0895
Hagens Berman's HEXO Securities Class Action:
According to the detailed Complaint filed by Hagens Berman, Defendants failed to disclose to investors that: (1) HEXO's reported inventory was misstated due to its failure to write down or write off obsolete product; (2) HEXO was engaging in channel-stuffing to inflate its revenue figures; and (3) HEXO was cultivating unlicensed cannabis at its facilities.
The truth emerged through a series of disclosures occurring between Oct. 4, 2019 and Nov. 15, 2019, when the Company announced it was producing cannabis in a section of its Niagara facility that was not properly licensed with Health Canada.
As a result of these disclosures, the value of HEXO stock has consistently decreased, damaging investors.
On Jan. 2, 2020, the Company restated its FY-2019 annual financial statements and Q-1 FY 2020 interim financial statements. Notably, the Company increased its annual impairment loss on inventory by about 14% and disclosed material weaknesses in internal controls over financial reporting.
On Jan. 17, 2020, the Company's questionable accounting practices came into focus again, when MarketWatch published a report challenging the Company's employee-options accounting. MarketWatch reported that since June 2017, the Company has been incorrectly tabulating the remaining lifetime weighted average of its employee stock options, potentially violating International Financial Reporting Standards.
"We're focused on investors' losses and proving Defendants knowingly provided false financial information to the market," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased HEXO common stock during the Class Period and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding HEXO should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP