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SAN FRANCISCO, Oct. 29, 2019 (GLOBE NEWSWIRE) -- Hagens Berman updates investors in HEXO Corp. (NYSE: HEXO) on the firm’s investigation of possible violations of federal securities laws and urges HEXO investors who have suffered losses in excess of $200,000 to contact the firm.
|Relevant Holding Period:||Before Oct. 28, 2019|
|Contact An Attorney Now:||HEXO@hbsslaw.com|
HEXO Corp. (HEXO) Investigation:
The investigation centers on whether HEXO misled investors about its business operations, reported financial results and financial guidance.
On Oct. 4, 2019, HEXO announced the abrupt and immediate resignation of its recently hired Chief Financial Officer.
Next, on Oct. 10, 2019, HEXO provided “preliminary” Q4 2019 revenue results that were nearly 50% lower than previous guidance and withdrew previously announced FY 2020 guidance of up to $400 million in revenue.
Then, on Oct. 24, 2019, the company announced that it would be raising C$70 million ($53.5 million) in convertible debentures through a private placement and that it was postponing its Q4 2019 earnings call.
Finally, on Oct. 28, 2019, HEXO announced that it will shut down several facilities near Niagara Falls, Ontario previously operated by Newstrike Brands, which HEXO acquired in the spring 2019. HEXO also announced that it will lay off 200 employees, almost a quarter of its entire workforce.
This news has caused HEXO stock to fall significantly, injuring HEXO investors.
“We’re focused on investors’ losses and whether the Company provided false financial information to the market,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of HEXO and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding HEXO Corp. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email HEXO@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000