b'CASES GOODWINThe court has appointed lead plaintiffs and counsel andRule 10b-5 against the company and its executives, the deadline for plaintiffs to file an amended complaintincluding its CEO, president and CFO for alleged is March 9, 2020. The case is ongoing and briefing onmaterially false and misleading statements related defendants anticipated motions to dismiss is expectedto the companys disclosure of its financial results. to be heard in 2020. Specifically, plaintiffs allege that the company failed to Canopy Growth Corp.: Ortiz v. Canopy Growthdisclose in its SEC filings, earnings call and other public statements that it was experiencing weak demand for Corporation et al., Case No. 2:19-cv-20543-KM- its soft gel and oil products, which they purportedly ESK (D.N.J., November 20, 2019) knew would negatively impact the companys financial Canopy Growth, Inc. (Canopy) is a Canadian-basedstanding.cannabis company that sells a range of products including soft gels and oils.Specifically, plaintiffs allege that the In June 2019, Canopy filed its Form 6-K with thecompany failed to disclose in its SEC filings, SEC and attached its Audited Annual Consolidatedearnings call and other public statements Financial Statements and Notes for the years ended March 31, 2019 and March 31, 2018, in addition to thethat it was experiencing weak demand for Managements Discussion and Analysis for the yearits soft gel and oil products, which they ended March 31, 2019. The company announced thatpurportedly knew would negatively impact revenue for its recreational cannabis oil and soft gelthe companys financial standing.sales was C$42.5 million in the fourth quarter of 2019 and C$85.3 million for the 2019 fiscal year. On its earnings call, Canopys CFO stated that the sales fromThe court has appointed co-lead plaintiffs and counsel the companys soft gel capsules accounted for 40% ofon February 10, 2020, and plaintiffs have a deadline gross revenue in the fourth quarter of the 2019 fiscalof April 20, 2020 to file an amended complaint. The year, which was a 20% increase in comparison to thematter is ongoing and defendants anticipated motions fourth quarter of the 2018 fiscal year.to dismiss are scheduled to be filed by no later than In August 2019, the company filed its Form 6-K forJune 25, 2020.the period ended June 30, 2019 and June 30, 2018,Aurora Cannabis, Inc.: Wilson v. Aurora which also contained its Consolidated Interim FinancialCannabis, Inc. et al., Case No. 2:19-cv-20588-Statements and Managements Discussion and AnalysisJMV-JBC (D.N.J., Nov. 21, 2019)of the Financial Condition and Results of Operations for the three months ended June 30, 2019, the companyAurora Cannabis, Inc. (Aurora) is a vertically integrated disclosed net sales of CA$0.2 million after the companycompany that produces and sells cannabis products, in adjusted its revenue downward by CA$8 million dueaddition to providing services across various segments to variable consideration that may result from rights ofof the cannabis value chain.return, and which primarily relates to oils and gelcaps. The company subsequently held a conference callIn September 2019, the company filed its Annual Report reassuring investors that demand for the companys oilon Form 40-F (for companies domiciled in Canada, and soft gel products remained strong. In Novemberbut trading on U.S. exchanges, this is the equivalent 2019, the company announced a significant loss forof a Form-K Annual Report) for the year ended June the second quarter of 2020 and the adjustment of its30, 2019, which included certifications pursuant to the retail pricing architecture, which caused it to take aSarbanes-Oxley Act signed by company executives restructuring charge of CA$32.7 million due to poorattesting to the accuracy of the companys financial sales, excessive returns and excess inventory. Thereporting. In its Annual Report the company touted its same day, the companys stock dropped 14.4%, orcontinued revenue growth over eight quarters. The $2.36 per share, to $15.84 per share. report also noted the companys increased capacity Investors filed a putative class action alleging violationsfor production and, on an earnings call in September of Sections 10(b) and 20(a) of the Exchange Act, and2019, Auroras Chief Corporate Officer reassured 15'