Harborside Inc. Class Action Lawsuit
- Company Name
- Harborside Inc.
- Stock Symbol
- Class Period
- July 2, 2019 to August 12, 2020
- District of Oregon
The Harborside Inc. class action lawsuit charges Harborside and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Harborside securities between July 2, 2019 and August 12, 2020, inclusive (the “Class Period”). The Harborside class action lawsuit was commenced on September 8, 2020 in the District of Oregon and is captioned Shahrohkimanesh v. Harborside Inc., No. 20-cv-01551.
Harborside purports to be a vertically-integrated cannabis company.
The Harborside class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Harborside had undisclosed material weaknesses and insufficient financial controls; (2) Harborside’s previously issued financial statements were false and unreliable; (3) Harborside’s earlier reported financial statements would need restatement; (4) as a result of the foregoing and subsequent reporting delays, Harborside’s Canadian stock trading would be suspended; (5) Harborside had downplayed the negative impacts of errors and delays regarding its financial statements; and (6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On May 29, 2020, Harborside issued a press release entitled “Harborside Inc. Announces Intent to Restate Certain Historical Financial Statements and Delay in Filing Annual Financial Statements and MD&A.” Specifically, Harborside disclosed that “the previously issued financial statements for the fiscal years ended December 31, 2017 and 2018 and the interim periods ended March 31, 2019, June 30, 2019 and September 30, 2019, and any corresponding management’s discussion and analyses . . . will be restated and reissued.” On this news, the price of Harborside shares allegedly fell.
Then, on June 22, 2020, Harborside issued a press release, entitled “Harborside Inc. Provides Update to Management Cease Trade Order and Cease Trade Order,” stating that Harborside “continues to expect to file the Annual Filings and Restated Audit no later than July 10, 2020,” and that, “[a]s required under Canadian securities laws, [Harborside] will provide a further update on or about June 30, 2020.” On this news, the price of Harborside shares allegedly fell more than 12% over the next two trading days.
Thereafter, on June 30, 2020, Harborside issued a press release, entitled “Harborside Inc. Provides Update on MCTO and Financial Statement Filings,” which stated that Harborside continued to expect to file the Annual Filings, as well as the financial statements for the fiscal years ended December 31, 2017 and 2018, no later than July 10, 2020. On this news, the price of Harborside shares allegedly fell more than 7%.
On July 10, 2020, Harborside issued a press release, entitled “Harborside Inc. Provides Update on Financial Statement Filings,” which stated that “despite significant efforts and progress to date, [Harborside] does not expect to complete the filing of the Restated Audit and Annual Filings by its previously expected filing date of July 10, 2020.” On this news, the price of Harborside shares allegedly fell more than 13%.
Finally, on August 12, 2020, Harborside filed with the Canadian securities regulatory authorities its Unaudited Restated Condensed Interim Consolidated Financial Statements for the Three and Six Months Ended June 30, 2019 and 2018 – which included a summary of the restatement’s impact. On this news, the price of Harborside shares allegedly fell more than 5%, further damaging investors.
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