Cronos Group, Inc. Accused of Deceiving Investors About the Size of Its Distribution Agreements
According to the complaint, on August 21, 2018, Cronos Group, Inc. announced that it had signed binding master supply agreements with several provinces, noting that the company was “committed to building strong relationships” with the provinces and its customers. The following week, on August 30, 2018, Citron Research published an article alleging that Cronos hid the size of its distribution agreements with provinces because the agreements were so small that the company could not justify the premium investors were paying for the stock. Citron also pointed out that despite having the first license issued by Health Canada in 2013, Cronos had vastly underperformed every big competitor. On this news, Cronos’ share price fell over 28% to close at $9.12 per share on August 30, 2018.
Cronos Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.