10/10/24 | Preliminary Approval Granted for $8.05M Settlement
The settlement valued at $8.05 million has been granted preliminary approval by the court. The settlement provides significant relief to purchasers of Aurora Cannabis Inc. from Oct. 23, 2018, through Feb. 28, 2020. A final hearing has been scheduled for Jan. 28, 2025.
This is a Consolidated securities class action litigation brought on behalf of investors who purchased or otherwise acquired Aurora Cannabis Inc. (“Aurora” or the “Company”) securities between January 8, 2019 to November 14, 2019 (“Class Period”).
Aurora Cannabis Inc., headquartered in Edmonton, Canada, cultivates and sells medicinal and recreational cannabis through a portfolio of brands that include Aurora, CanniMed, MedReleaf, and San Rafael '71. On October 23, 2018, the company began listing its stock on the New York Stock Exchange.
The litigation alleges that Defendants made false and misleading statements and omissions about Aurora’s business, financial performance and prospects. Specifically, Plaintiffs allege that Defendants failed to disclose that they had materially overstated the demand and potential market for Aurora’s consumer cannabis products, that the Company had failed to comply with licensing requirements in the all-important German market, and that the Company was suffering from liquidity constraints and the over-extension of capital commitments, among other misstatements. As a result of concealing this information from the market, the Company’s securities traded at artificially inflated prices throughout the Class Period.
The market learned the truth through a series of disclosures beginning on November 14, 2019, when the Company announced disappointing first quarter of fiscal 2020 results, reporting a 25% sequential sales decline and a 33% sequential consumer cannabis revenue decline. In addition, the Company revealed that it was halting construction on two key production facilities, its Aurora Nordic 2 facility in Denmark and its Aurora Sun facility in Medicine Hat, Alberta. Then, on November 29, 2019, Marijuana Business Daily reported that Aurora had violated regulations for the sale of cannabis to German pharmacies. On December 21, 2019, Aurora announced that the Company’s Chief Corporate Officer would be stepping down. Finally, on January 6, 2020, media reports stated that the Company had listed its nine-hectare greenhouse in Exeter, Ontario, for sale for $17 million.
These revelations have caused the price of Aurora securities to plummet. All told, the price of Aurora common stock has fallen over 80% from its Class Period high, causing investors in the Company to suffer massive losses.
CASE TIMELINE
Hagens Berman is pleased to announce a settlement with defendants totaling $8.05 million. The settlement provides significant relief to purchasers of the securities of Aurora Cannabis Inc. from Oct. 23, 2018 through Feb. 28, 2020, both dates inclusive. We have filed a motion for preliminary approval of the settlement and are awaiting the judge’s ruling.
