Class-action lawsuit launched in B.C. against Canopy cannabis over financial reporting

A B.C. investor has launched a class-action lawsuit against Canopy Growth Corp., one of Canada’s largest cannabis companies.

The filing in B.C. Supreme Court is the first step required to certify a class-action, which could represent several plaintiffs suffering similar losses.

Deyar Asmaro, a psychologist and professor at Langara College and UBC, filed the class-action as the representative plaintiff. He said his shares dropped in value when the company admitted to errors in its financial reporting.

Asmaro “alleges that between Aug. 6, 2021, and Feb. 9, 2023, WEED published … misrepresentation that was publicly corrected on May 10, 2023.” WEED is Canopy’s trading name on the Toronto Stock Exchange.

On Aug. 6, 2021, the company had released statements for the first financial quarter of 2022, including that net revenue was up $136.2 million, compared with $110.4 million in the first quarter of 2021, according to the lawsuit.