Aurora Cannabis Inc. Class Action Lawsuit

Company Name
Aurora Cannabis Inc.
Stock Symbol
Class Period
February 13, 2020 to September 4, 2020
District of New Jersey

Case Summary

The Aurora Cannabis Inc. class action lawsuit charges Aurora Cannabis and certain of its executives with violations of the Securities Exchange Act of 1934 between February 13, 2020 and September 4, 2020, inclusive (the “Class Period”).  The Aurora Cannabis class action lawsuit was commenced on October 2, 2020 in the District of New Jersey and is captioned Lawless v. Aurora Cannabis Inc., No. 20-cv-13819.

Aurora Cannabis produces and distributes medical cannabis products worldwide.

The Aurora Cannabis class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (i) Aurora Cannabis had significantly overpaid for previous acquisitions and experienced degradation in certain assets, including its production facilities and inventory; (ii) Aurora Cannabis’s purported “business transformation plan” and cost reset failed to mitigate the foregoing issues; (iii) accordingly, it was foreseeable that Aurora Cannabis would record significant goodwill and asset impairment charges; and (iv) as a result, Aurora Cannabis’s public statements were materially false and misleading at all relevant times.

On September 8, 2020, Aurora Cannabis issued a press release “announc[ing] an update on its business operations along with certain unaudited preliminary fiscal fourth quarter 2020 results.”  Among other things, Aurora Cannabis announced that Aurora Cannabis expected to record up to $1.8 billion in goodwill impairment charges in the fourth quarter of 2020.  Aurora Cannabis also disclosed that “previously announced fixed asset impairment charges[ were] now expected to be up to $90 million, due to production facility rationalization, and a charge of approximately $140 million in the carrying value of certain inventory, predominantly trim, in order to align inventory on hand with near term expectations for demand.”  On this news, the price of Aurora Cannabis’s stock fell more than 11%, damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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