b'CASES GOODWINthe revenue guidance provided to investors and thatOn September 25, 2018 Trulieve filed a Listing the company was cultivating cannabis that was notStatement with the Canadian Securities Exchange properly licensed by Health Canada, the regulatoryfollowing the companys merger with Schyan agency overseeing the countrys public health. Exploration, Inc., which set forth the companys assets and details on its operations. The company continued to disclose its financial results between November Specifically, plaintiffs alleged that the2018 and November 2019, which primarily detailed company failed to disclose that the companythe value of the companys biological assets, gross misstated its inventory, engaged in channel- profit and assessments of the companys current stuffing in order to inflate its revenues figuresfinancial condition. In December 2019, an analyst report was published alleging that Trulieve failed to in order to meet or exceed the revenuedisclose certain real estate transactions with insiders, guidance provided to investors and that thethe true quality of its cannabis production and that company was cultivating cannabis that wasthe companys markups on biological assets were not properly licensed by Health Canada, theexcessive and unreasonable. That same day, the regulatory agency overseeing the countryscompanys stock fell by $1.51 per share, or over 12%, to close at $10.40 per share.public health.Plaintiffs filed a putative class action alleging violations of Sections 10(b) and 20(a), and Rule 10b-Plaintiffs have submitted competing motions regarding5 in connection with materially false and misleading consolidation and appointment of lead plaintiffs andstatements made in the companys financial reporting. counsel. The case is ongoing. Plaintiffs specifically alleged that the company failed Trulieve Cannabis Corp.: McNear v. Trulieveto disclose that it overstated the value of its biological assets, which allowed the companys gross profit to be Cannabis Corp. et al., Case No. 1:19-cv-07289- inflated and failed to disclose that it engaged in a real EK-RER (E.D.N.Y., Dec. 30, 2019) estate transaction with a company executive. Trulieve Cannabis Corp. (Trulieve) is a Canadian- The case is ongoing.based medical marijuana company that distributes its products in its branded stores in Florida as well as through home delivery.17'