OAKLAND, Calif.--(BUSINESS WIRE)--Shares of Cronos Group Inc. dropped 15% on November 9, 2021, after the company announced in an SEC filing that it would be required to restate its financial statements for the three and six months ended June 30, 2021, and that it should have taken an impairment charge of at least $220 million for that same period. Cronos’ price dropped another 5% on November 19, 2021 after announcing it had received a non-compliance delinquency letter from Nasdaq due to its ill-timed Form 10-Q filing. As of February 14, 2022, Cronos has still not filed their restatement. Gibbs Law Group is looking into a potential Cronos Securities Class Action Lawsuit on behalf of shareholders who lost money in Cronos Group Inc. (NASDAQ: CRON).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Tuesday, November 9, 2021, shares of the cannabis company Cronos Group crashed after announcing that it would not file its quarterly report for the period ended Sept. 30, 2021, in a timely manner. That same day, Cronos disclosed in an SEC filing that it would be required to restate its unaudited interim financial statements for the three and six months ended June 30, 2021, previously filed in a Form 10-Q.
In the 8-K filing, Cronos further admitted that it “should have recorded an impairment charge of not less than $220 million on goodwill and indefinite-lived intangible assets in its U.S. reporting unit” for the three and six months ended June 30, 2021. According to the filing, Cronos concluded that the financial statements for this period “should no longer be relied on.”
Following this news, Cronos’ stock price steeply dropped more than 15% in intraday trading on November 9, 2021, causing significant harm to investors.
What Should Cronos Investors Do?
If you invested in Cronos, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Cronos Group has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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