Shareholder Alert: Robbins LLP Announces Cronos Group, Inc. (CRON) Sued for Misleading Shareholders

Shareholder rights law firm Robbins LLP announces that a purchaser of Cronos Group, Inc. (NASDAQ: CRON) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between May 9, 2019 and March 2, 2020. Cronos, formerly known as PharmaCan Capital Corp., is a principal investment firm.

If you suffered a loss as a result of Cronos' misconduct, click here.

Cronos Group, Inc. (CRON) Accused of Misleading Shareholders

According to the complaint, throughout the relevant period, Cronos announced its financial results for the first three quarters of 2019, touting net revenues of over 100%-200% from the same quarter previous year as well as quarter-over-quarter net revenue increases. Then, on February 24, 2020, Cronos stated that it would delay its fourth quarter and fiscal year 2019 earnings release. On this news, Cronos' share price fell almost 11% to close at $6.37. The true state of Cronos' financials was revealed on March 2, 2020, when Cronos disclosed that it had requested a 15-day extension to file its Annual Report with the SEC for its fourth quarter and fiscal year 2019. The Company attributed the delay to a "review by the Audit Committee of the Company's Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions." On this news, Cronos' share prices fell another 11.63%, to close at $5.32 per share. The stock continues to decline.

Cronos Group, Inc. (CRON) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
lkandinov@robbinsllp.com
Shareholder Information Form

Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200316005695/en/