NEW YORK (STL.News) Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Trulieve Cannabis Corp. (“Trulieve” or the “Company”) (OTCQX: TCNNF) between September 25, 2018 and December 17, 2019, inclusive (the “Class Period”). The lawsuit filed in the United States District Court for the Eastern District of New York alleges violations of the Securities Exchange Act of 1934.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Trulieve overstated its mark-up on its biological assets; (2) therefore, Trulieve’s reported gross profit was inflated; (3) Trulieve engaged in an undisclosed related party real estate sale with Defendant Rivers’ husband; and (4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 17, 2019, during market hours, Grizzly Research published a report explaining that Trulieve had failed to disclose: (i) real estate transactions with insiders; (ii) that, rather than high-quality indoor production, the vast majority of the Company’s marijuana was produced in low quality “hoop houses”; and (iii) that the Company’s markup on biological assets was excessive and unreasonable.
On this news, shares of Trulieve fell $1.51 per share or over 12.6% to close at $10.40 per share on December 17, 2019, damaging investors.
NOTE: this is NOT the complete release.