Aurora Cannabis Inc.

ACB
Lawless v. Aurora Cannabis Inc., et al., No. 20-cv-13819

On September 8, 2020, Aurora Cannabis Inc. (NYSE: ACB) stunned the market when it announced that it expected to record up to $1.8 billion in goodwill impairment charges in the fourth quarter of 2020. On the same day, Aurora also announced a charge of approximately $140 million in the carrying value of certain inventory, and that it was appointing a new chief executive officer. On this news, Aurora’s stock fell approximately 11.6% in just one day. Since May 2020, Aurora’s stock is down approximately $12.80 per share, or 74%.

A lawsuit alleging violations of federal securities laws has been filed against Aurora and certain of its officers and directors. The suit alleges, among other things, that Aurora misled investors as to the value of prior acquisitions, that the Company had experienced degradation in certain assets, and that as a result, it was foreseeable that Aurora would record significant goodwill and asset impairment charges. According to the lawsuit, this news was so shocking because Aurora had previously lauded a “business transformation plan” that would purportedly “better align the business financially with the current realities of the cannabis market.”

Lead Plaintiff deadline
December 2, 2020
class period
February 13, 2020
to
September 4, 2020
Case Documents
No documents available. Contact us if you need a case document.