Pot Stock Losses: Aurora Cannabis Securities Investigation
Have you suffered losses investing in Aurora Cannabis (ACB) at the advice of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA arbitration.
According to the Wall Street Journal yesterday, Investors in cannabis companies are finding their money is “going up in smoke” this week after a round of sad earnings reports.
Aurora Cannabis Inc. is a Canadian licensed cannabis producer, headquartered in Edmonton. It trades on the Toronto Stock Exchange as ACB. As of late September 2018, Aurora Cannabis had eight licensed production facilities, five sales licences, and operations in 24 countries.
Shares of Aurora Cannabis reportedly dropped 11% after announcing quarterly results. The company, who reported a 24% decline in revenue yesterday, is halting production on facilities in Denmark and Canada, according to MarketWatch on November 15.
According to one Forbes analyst in August, pots stocks may never recover, because now that is legal, selling marijuana is like selling any other crop. “Selling marijuana was lucrative because it was illegal.”
The analyst added that marijuana is a tough business and will get tougher as the market matures.
While revenues were reportedly up 61% for Aurora Cannabis at then of 2019, stock declined almost 65% in the past six months. What happened? New companies are flooding in, and the competition is rapidly increasing.
The White Law Group is investigating potential securities fraud claims involving broker dealers who may have unsuitably recommended pot stocks like Aurora Cannabis to investors.
Broker-dealers have a legal obligation to act in the best interest of their clients and have to demonstrate adequate due diligence on an investment before recommending the investment to a client. Investment recommendations should be consistent with an individual’s age, risk tolerance, financial objectives, and investment knowledge.
Broker-dealers that have not done their fiduciary duty or adequately disclose the risks when selling investments may be held liable for damages lost through FINRA arbitration claims.
If you have suffered losses investing in Aurora Cannabis or another pot stock, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.