Shareholders Filed a Lawsuit Against Canopy Growth for Hiding Product Costs

Court: E.D. New York

Case: 1:25-cv-01877

On April 4, 2025, CGC shareholders have filed a class action against Canopy Growth, accusing it of misrepresenting production costs and overstating the strength of its profit margins.

What is this lawsuit about?

On February 7, 2025, Canopy reported a 400 basis point drop in gross margin, citing high production costs from the Claybourne pre-roll launch and rising shipping expenses. The company also posted a loss of C$1.11 per share, missing expectations significantly. Following this, CGC dropped 27.3% in one day.

What can you do to recover your losses now?

We’re keeping track of all updates and will notify CGC investors about potential recovery.

More than 600 companies are currently facing securities class action lawsuits, and over 100 are already paying settlements. Connect your brokerage account to automatically check which ones you may have missed.