CRON Stock: Berger Montague Investigates Securities Fraud Class Action Claims Against Cronos Group, Inc. (NASDAQ: CRON); Lead Plaintiff Deadline is May 11, 2020
PHILADELPHIA, March 27, 2020 – Berger Montague is investigating securities fraud claims against Cronos Group, Inc. (“Cronos” or the “Company”) on behalf of all purchasers of Cronos common stock (NASDAQ: CRON) between May 9, 2019 and March 2, 2020 (the “Class Period”).
If you purchased Cronos shares, have information, would like to discuss this investigation, or have any questions concerning your rights or interests, please contact our attorneys Michael Dell’Angelo, Esq. at (215) 875-3080 or Andrew Abramowitz, Esq. at (215) 875-3015, or fill out the form on this page.
According to the complaint, at the same time that the Company was touting its revenue growth, it was also concealing the fact that it had improperly recognized revenue from significant transactions. The market began to learn the truth on February 24, 2020, when Cronos announced it would delay its fourth quarter and full-year 2019 earnings release and conference call. On this news, shares fell nearly 11%, or $0.78, to close at $6.37 per share.
Then, on March 2, 2020, Cronos announced that its Audit Committee was reviewing the Company’s revenue recognition on several bulk resin transactions. Cronos also said it expected: (1) a material inventory write-down; (2) a material decrease in gross profit; and, (3) a material increase in operating loss. On this news, shares dropped an additional 11%, or $0.70, to close at $5.32.
After the Class Period, on March 17, 2020, Cronos announced it will restate its previously issued financial statements for the first three quarters of 2019 to eliminate revenue recognized from certain wholesale transactions.
Finally, on March 20, 2020, MarketWatch reported that the SEC was investigating Cronos’s revenue recognition practices.
If you purchased Cronos common stock during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is May 11, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Cronos Group, Inc. should consider their options to help Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of successful recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.