Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Cheetah Mobile (NYSE:APHA) in connection to alleged violations of securities laws by APHA. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Aphria between July 17, 2018 and October 24, 2018.
The class action complaint specifically alleges that during the period in question, APHA might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that certain assets recently purchased by the company in Latin America did not have proper licensure and had been overvalued; that the company’s acquisition of these assets stood to enrich APHA’s chief executive officer as well as others within the company to the detriment of its shareholders; and that consequently the company’s statements about its business, operations and prospects were false and misleading and/or had no reasonable basis. The complaint alleges that when true facts emerged in the form of a December 3, 2018 article by Hindenburg Research, alleging that the company “is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets,” the company’s share price declined in value $1.85/share, or roughly 23.4%, closing at $6.05/share on that day.
According to the company’s website, Aphria is a public licensed medical cannabis producer, and the first such producer “to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.” The company is headquartered in Leamington, Ontario with operations in British Columbia, Jamaica, Denmark, Germany, Italy, Malta, Colombia, Australia, and Argentina. It trades under the symbol APHA.