NEW YORK–(BUSINESS WIRE)–Faruqi & Faruqi, LLP, a leading national securities law firm, reminds
investors in KushCo Holdings, Inc. (“KushCo” or the “Company”)(Other
OTC:KSHB) of the July 1, 2019 deadline to seek the role of lead
plaintiff in a federal securities class action that has been filed
against the Company.
If you invested in KushCo stock or options between July 13, 2017 and
April 9, 2019 and would like to discuss your legal rights, click
here: www.faruqilaw.com/KSHB.
There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292
or at 212-983-9330 or by sending an e-mail to [email protected].
The lawsuit has been filed in the U.S. District Court for the Central
District of California on behalf of all those who purchased KushCo
securities between July 13, 2017 and April 9, 2019 (the “Class Period”).
The case, May v. KushCo Holdings, Inc. et al., No. 19-cv-00798
was filed on April 30, 2019, and has been assigned to none yet.
The lawsuit focuses on whether the Company and its executives violated
federal securities laws by failing to disclose that: (1) KushCo made
material accounting errors in connection with its acquisitions of CMP
Wellness, Summit, and Hybrid; (2) as a result, KushCo’s previously
issued financial statements as of and for the fiscal years ended August
31, 2018 and August 31, 2017, included in the Company’s Annual Reports
on Form 10-K for such periods, and financial statements as of and for
the quarterly periods ended May 31, 2017, November 30, 2017, February
28, 2018, May 31, 2018 and November 30, 2018, included in the Company’s
Quarterly Reports on Form 10-Q for such periods, could not be relied
upon; (3) KushCo’s net loss for the fiscal year ended August 31, 2018,
was more than twice as high than previously reported; and (4) KushCo and
its management’s assurances that its financial statements for those
fiscal years and periods were accurate and fairly reported could not be
relied upon.
On April 9, 2019, KushCo issued a press release that announced the
Company’s decision to restate prior period financial statements for
fiscal years 2017 and 2018 for non-cash items related to acquisitions of
CMP Wellness, Summit Innovations and Hybrid Creative.
On this news, KushCo’s share price fell from $5.80 per share on April 9,
2019 to a closing price of $5.35 on April 10, 2019: a $0.45 or a 7.76%
drop.
The court-appointed lead plaintiff is the investor with the largest
financial interest in the relief sought by the class who is adequate and
typical of class members who directs and oversees the litigation on
behalf of the putative class. Any member of the putative class may move
the Court to serve as lead plaintiff through counsel of their choice, or
may choose to do nothing and remain an absent class member. Your ability
to share in any recovery is not affected by the decision to serve as a
lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding
KushCo’s conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with respect
to any future matter. We welcome the opportunity to discuss your
particular case. All communications will be treated in a confidential
manner.
Contacts
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New
York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Telephone:
(877) 247-4292 or (212) 983-9330
