NEW YORK, NY / ACCESSWIRE / February 14, 2020 / Pomerantz LLP announce that a class action lawsuit has been filed against Trulieve Corporation ("Trulieve" or the "Company") (OTCQX:TCNNF) and certain of its officers. The class action, filed in United States District Court for the Eastern District of New York, and docketed under 20-cv-00775, is on behalf of a class consisting of investors who purchased or otherwise acquired Trulieve securities between September 25, 2018 and December 17, 2019, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Trulieve securities during the class period, you have until February 28, 2020 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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Trulieve, together with its subsidiaries, purports to operate as a medical marijuana company. The Company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as directly to patients through home delivery.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Trulieve overstated its mark-up on its biological assets; (ii) therefore, Trulieve's reported gross profit was inflated; (iii) Trulieve engaged in an undisclosed related party real estate sale with Defendant Rivers' husband; and (iv) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 17, 2019, during market hours, Grizzly Research published a report (the "Report") explaining that Trulieve had failed to disclose: (i) real estate transactions with insiders; (ii) that rather than high-quality indoor production, the vast majority of the Company's marijuana was produced in low quality hoop houses; and (iii) the Company's markup on biological assets was excessive and unreasonable.
The Report provided evidence that One More Wish LLC, an entity in which Trulieve engaged in a real estate transaction, was controlled by Kim Rivers, the company's Chief Executive Officer husband, JT Burnett.
The Report also explained after researching Trulieve's manufacturing facilities, it was found that the vast majority of the Company's cultivation facilities were "low-quality hoop houses" that were "prone to infestations and weather damage."
The Report went on to explain that the Company's markups on biological assets were likely inflated as a result.
On this news, shares of Trulieve fell $1.51 per share, or over 12.6%, to close at $10.40 per share on December 17, 2019, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP