This is a proposed securities class action against Canopy Growth Corporation (“Canopy”), certain of its directors and officers, and the independent auditor of its annual financial statements. This action arises out of misrepresentations made in Canopy’s disclosure documents regarding the financial status of its subsidiary, BioSteel Sports Nutrition Inc. (“BioSteel”), and the profitability of Canopy as a whole, as well as regarding Canopy’s internal controls over its financial reporting. Specifically, it is alleged that during the Class Period, Canopy materially overstated BioSteel’s revenues, growth, gross margins, and goodwill, leading investors to believe that BioSteel and Canopy were doing better than they actually were, and thereby inflating Canopy’s stock price. These material misstatements required Canopy to restate its prior financial statements and MD&A and admit it had material weaknesses in its internal controls over financial reporting. This action also asserts that Canopy's failure to remedy known deficiencies in BioSteel's financial controls was oppressive and unfairly disregarded the interests of the Class Members.
Class Membership Criteria
This class action is brought on behalf of:
- All persons and entities, other than certain Excluded Persons, who acquired Canopy’s securities in the secondary market between June 1, 2021 and June 22, 2023 (both dates inclusive) and held some or all of those securities until the close of trading on May 10, 2023 or June 22, 2023, and who either:
- (i) are residents of Canada or were residents of Canada at the time of such acquisitions, regardless of the location of the exchange on which they acquired Canopy’s securities; or
- (ii) acquired Canopy’s securities on an exchange in Canada or another exchange located outside of the United States, regardless of where they reside or are domiciled.
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