Shareholders Filed a Lawsuit Against $CGC for Misrepresenting BioSteel’s Financial Performance

Case: CV-23-00701769-00CP

CGC shareholders have filed a class action against Canopy Growth, accusing it of overstating the financial performance of its BioSteel Nutrition subsidiary, concealing serious internal control weaknesses, and failing to address known accounting issues despite prior warnings.

What is this lawsuit about?

Between June 1, 2021, and June 22, 2023, Canopy Growth repeatedly portrayed BioSteel as achieving strong revenue growth and profitability while assuring investors its internal controls were effective. In reality, BioSteel’s revenue was allegedly overstated, internal controls were deficient, and improper revenue recognition practices persisted.

These issues began to surface on May 10, 2023, when the company disclosed material misstatements and control deficiencies, and intensified on June 22, 2023, when it revealed further inaccuracies and confirmed overpayment to BioSteel’s minority shareholders. Following these disclosures, CGC’s share price fell sharply, causing significant investor losses.

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.