Block & Leviton Investigates HEXO Corp. For Possible Fraud; Investors Who Lost Money Should Contact The Firm
GLOBE NEWSWIRE, 17 March 2020
Block & Leviton LLP (www.blockesq.com), a National Securities Litigation law firm, is investigating whether HEXO Corp. (HEXO) misled its shareholders. Investors who have lost money should contact the Firm for a free case evaluation. On March 17, 2020 HEXO announced that it would delay the release of its second quarter 2020 financial results to record a significant impairment charge and to amend its MD&A disclosures for its first and second quarter to address concerns raised by the Ontario Securities Commission. HEXO’s common stock is down more than 30% in early trading. “The company’s announcement is concerning; we are focused on the potential recovery of investor losses,” said Mark Delaney, the Block & Leviton attorney leading the investigation.
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Silver Law Group Investigates Marijuana Company HEXO Corp. (HEXO)
Silver Law Group, 06 January 2020
On October 4, 2019, HEXO Corp. announced the sudden resignation of its Chief Financial Officer (FCO), Michael Monahan, after four months in the position. The next trading day, the company’s stock closed down 6.4%. A few days after that, Bank of America analyst Christopher Carey downgraded the stock from “buy” to “underperform” and said that such an abrupt resignation from an experienced CFO would cause investors to wonder what they didn’t know. On October 10, 2019, HEXO released preliminary revenue data for the fourth quarter of 2019 that were almost 50% lower than their previous guidance. They also withdrew guidance for fiscal 2020 of up to $400 million in revenue.
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Investors Slam Canadian Cannabis Company Over Use of Unlicensed Facility
NICKEESHA SWABY, 04 December 2019
(CN) – A cross-border securities class action against Canadian cannabis company HEXO Corp. alleges the company inflated revenue figures, misstated inventory, and grew cannabis in an unlicensed facility leading to hundreds of millions of dollars in market capitalization loss.
The lawsuit was filed in the U.S. District Court for Southern New York on behalf of investors who purchased HEXO stock between Jan. 25, 2019 and Nov. 15, 2019. HEXO, based in Quebec, Canada, produces, markets and sells cannabis for recreational and medical use. The company is listed on the Toronto Stock Exchange, and on July 16, 2019 began trading on the New York Stock Exchange.
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