Greenlane Holdings, Inc. Class Action Lawsuit
- Company Name
- Greenlane Holdings, Inc.
- Stock Symbol
- Class Period
- Purchasers of Greenlane common stock pursuant to the April 18, 2019 initial public offering
- Motion Deadline
- November 10, 2019
- Southern District of Florida
On September 11, 2019, the Greenlane Holdings, Inc. class action lawsuit was filed charging Greenlane, certain of its officers and directors, and the underwriters of Greenlane’s initial public offering (“IPO”) with violations of the Securities Act of 1933. The Greenlane class action lawsuit was commenced in the United States District Court for the Southern District of Florida on behalf of persons and entities that purchased or otherwise acquired Greenlane common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Greenlane’s April 2019 IPO and is captioned Hammond v. Greenlane Holdings, Inc., No. 9:19-cv-81259.
Greenlane distributes e-cigarettes, vaporizers, and accessories through its subsidiaries. In April 2019, Greenlane completed its IPO, selling more than 6 million shares of common stock at $17.00 per share.
The Greenlane class action lawsuit alleges that the Registration Statement issued in connection with Greenlane’s April 2019 IPO was materially false and misleading and/or omitted to state adverse information regarding Greenlane’s business and prospects, including that the City of San Francisco had introduced a major initiative to ban the sale of e-cigarette products across three major cities and to prohibit the manufacture of products at the headquarters of Greenlane’s key partner, JUUL Labs, and that, if approved, the initiative would materially and adversely impact Greenlane’s financial results and prospects.
On June 18, 2019, the San Francisco Board of Supervisors unanimously approved the ban on the sale and distribution of e-cigarette products within the city and endorsed a ban on the manufacturing of e-cigarette products on city property. According to San Francisco’s City Attorney, the “legislation takes a reasoned approach,” simply stating that “if a tobacco product is required to have [U.S. Food and Drug Administration (“FDA”)] approval to be on the market, it can’t be sold in San Francisco until it receives that approval.” On this news, Greenlane’s stock price fell $2.27 per share, or over 17%, to close at $11 per share on June 19, 2019. On June 24, 2019, Greenlane issued a press release in an attempt to soften the impact of the regulation. The release quoted the FDA, which had previously stated that “‘e-cigarettes may present an important opportunity for adult smokers to transition off combustible tobacco products and onto nicotine delivery products that may not have the same level of risks associated with them.’” This did little to stem the decline in Greenlane’s stock price, however, which has fallen to as low as $5.39 per share since the IPO, a nearly 68% decline from the $17 per share April 2019 IPO price.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Greenlane common stock pursuant and/or traceable to the Registration Statement to seek appointment as lead plaintiff in the Greenlane class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Greenlane class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Greenlane class action lawsuit. An investor’s ability to share in any potential future recovery of the Greenlane class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Greenlane class action lawsuit or have questions concerning your rights regarding the Greenlane class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Greenlane class action lawsuit must be filed with the court no later than November 10, 2019.
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 six 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.