On March 2, Chronos Group, a global cannabinoid company with international production and distribution announced that it was unable to complete its financial report and statements for fiscal 2019 because its audit committee, outside counsel and forensic accountants are reviewing several bulk resin purchases and sales of products through its wholesale channel and the appropriateness of the recognition of revenue from those transactions.
On Friday March 20, the company sent an email to its staff asking them to keep specific records due to a “confidential and non-public inquiry by the Securities and Exchange Commission,” according to MarketWatch. That “inquiry” is undoubtedly an SEC subpoena or voluntary request for production of documents.
A shareholder class action has been filed against Cronos for investors who bought the stock between May 9, 2019 and March 2, 2020. Being part of a class action is not always the best remedy for individual investors. If you bought Cronos stock during this period contact Sallah Astarita & Cox, to learn about your rights and ways you might recover your losses.
Sallah Astarita & Cox, LLC is a national securities law firm whose partners are former SEC Staff Attorneys and Broker-Dealer attorneys, representing investors and financial professionals nationwide. Call 212-509-6544 to speak to an experienced securities attorney.