Aurora Cannabis (ACB) Investor Settlement

Eligible claimants can submit their claims for compensation.

D. New Jersey

Court

2:19-cv-20588

Case number

10/23/2018

Class period Start

02/28/2020

Class period End

Aurora Cannabis (ACB) has agreed to settle $8M with investors to resolve claims over hiding revenue decline in 2019.

Outline

In 2019, Aurora Cannabis was accused of overstating its revenue, growth prospects, and progress in its construction facilities. Following this, $ACB significantly fell, and Aurora Cannabis faced a lawsuit from investors.

Timeline
On September 11, 2019: On their annual report Aurora Cannabis underlined significant revenue growth and ongoing expansion.
On November 14, 2019: Aurora announced its Q1 2020 results, which were lower than expected.
On November 15, 2019: Following this disclosure, $ACB fell by 17%.
On November 18, 2019: MarketWatch published an article criticising Aurora's management and $ACB fell further by 16%.
On November 21, 2019: Aurora Cannabis faced a lawsuit from investors regarding their overstatements on the company's financial health.
Background

On September 11, 2019, Aurora Cannabis filed its annual report stating significant revenue growth, ongoing expansion, and a positive financial outlook. Also, the executives highlighted promising growth and financial prospects.

Despite these claims, on November 14, 2019, Aurora announced its Q1 2020 results, revealing a 25% decline in sales and a 33% drop in consumer cannabis revenue.

On November 14, 2019, Aurora Cannabis announced major changes to its plans. The company stopped building its two key facilities, Aurora Nordic 2 in Denmark and Aurora Sun in Canada. These sites were supposed to boost production. Aurora also said it would cut its spending by CAD $190M, showing a big shift in its growth plans.

After this news, $ACB dropped by 17% on November 15.

Following the initial decline, MarketWatch published an article criticising Aurora's management for a significant drop in revenue and halting construction on two facilities.

This article also caused $ACB to drop 16%.

On November 21, 2019, investors filed a lawsuit against Aurora and its executives, accusing them of misleading about the company's financial health and prospects.

What can investors expect now?

Aurora Cannabis reached an agreement with $ACB investors to settle claims over hiding revenue decline in 2019.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

11/21/2019

Lead Plaintiff Deadline

01/20/2020

Plaintiffs

Doug Daulton, Francisco Quintana, Donald S. Parrish, and Quang Ma.

Attorneys

Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C. (Roseland, NJ), Hagens Berman Sobol Shapiro LLP (Seattle, WA), Robbins Geller Rudman & Dowd LLP (Melville, NY), The Schall Law Firm (Los Angeles, CA)

Defendants

Terry Booth, and Allan Cleiren.

Judge

Hon. Brian R. Martinotti

Administrator

JND Legal Administration

Attorney fee

$2,012,500

Trades matching type

FIFO

+$8,005,000

Cash Settlement Amount

Frequently Asked Questions

Do I have to sell securities to be eligible?

How long does the payout process take?

What is 11thestate?