Aurora Cannabis Inc. (TSX: ACB, NYSE: ACB, FSE: 21P1 , OTC: ACBFF)
Court of Queens Bench of Alberta, Court File No.: 2003 12747
Andrew Morganti and Albert Pelletier have become members of Kim Spencer McPhee Barristers, P.C., and the authoritative page for this securities litigation can now be found at our new website.
This securities class action relates to the Defendants releasing core documents and making other statements containing material misrepresentations about the financial health of Aurora Cannabis Inc. (”Aurora”). These misrepresentations claimed that the Company’s sales of cannabis were high and that revenue was continuing to increase as a result of consumer demand, when in fact demand for cannabis was far outstripped by supply capacity at that time. Aurora also claimed that construction was progressing well at facilities meant to address this apparitional consumer demand, when Aurora in fact knew that such expanded production was not addressing a market need. These misrepresentations had the effect of distorting the investment risk and artificially inflating the Company’s perceived value and share price.
In September of 2019, the Defendant Aurora released quarterly statements (which Individual Defendants Terry Booth and Glen Ibbott certified as not containing misrepresentations), an Annual Report, and hosted an investor conference call in which the Company claimed that it expected adjusted EBITDA to improve due to higher sales, improved gross margins, and prudent Selling, General and Administrative Expenses (“SG&A”) growth, as well as strong selling of products that was already occurring at the retail level at that time. These statements also claimed that Aurora expected to see growth in its core business, and a plateau of demand between then and year end.