Scott+Scott Attorneys at Law LLP (Scott+Scott), a national shareholder and consumer rights litigation firm, today announced that it has filed a securities class action lawsuit (the Complaint) against Aphria Inc. (Aphria or the Company) (NYSE:APHA) and certain of the Companys officers and directors (collectively, with Aphria, Defendants) for violating federal securities laws. If you purchased Aphria securities between July 17, 2018 and December 4, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for more information. Prior to November 2, 2018, Aphria traded on the OTCQB Venture Market exchange under the symbol APHQF.
The action, which was filed today in the U.S. District Court for the Southern District of New York, asserts claims under §§10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act), 15 U.S.C. §§78j(b) and 78t(a), and SEC Rule 10b-5 promulgated thereunder, 17 C.F.R. §240.10b-5, on behalf of all persons and entities, other than Defendants and their affiliates, that purchased or otherwise acquired Aphria securities on U.S. exchanges between July 17, 2018 and December 4, 2018, inclusive (the Class Period) and suffered damages as a result of the misconduct alleged in the Complaint (the Class).
Aphria is a global cannabis company based in Canada.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of the Companys recent Latin American acquisitions were worth far less than represented; (ii) the Company was engaged in undisclosed self-dealing; (iii) the quality of Companys cannibus was inferior to competitors; and (iv) as a result of the foregoing, certain of Aphrias public statements were materially false and misleading at all relevant times. On December 3, 2018, Hindenburg Research released a report, titled Aphria: A Shell Game with a Cannabis Business on the Side. According to the report, which was also released on Seeking Alpha, Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets. In addition, the report found that Aphrias recent Latin American acquisitions are suspect, it engages in undisclosed self-dealing, and its product is inferior.
On this news, the price of Aphria stock fell $3.39, or over 42%, over the next two trading days.
What You Can Do
If you purchased Aphria stock between July 17, 2018 and December 4, 2018, or you have questions about your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at [email protected]. Aphria investors have until February 4, 2019 to move for lead plaintiff.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.