Pot Stock Losses: Canopy Growth Corp. Securities Investigation
Have you suffered losses investing in Canopy Growth Corp. (CGC) 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.
Canopy Growth Corp., the largest cannabis company by market value, (formerly Tweed Marijuana Inc.), is based in Smiths Falls, Ontario.
Shares of Canopy Growth Corp. reportedly dropped 14% in one day, with a 41% decline this year. The company reportedly says it lost C$26.9 million on returned cannabis oil products that retailers in Canada did not want. Canopy said “price changes will cost the company about C$10.3 million,” 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 doubled last year for Canopy Growth Corp., stock declined almost 50% between April and August of this year. What happened? New companies are flooding in, and the competition is apparently cutting pot prices in half.
The White Law Group is investigating potential securities fraud claims involving broker dealers who may have unsuitably recommended pot stocks like Canopy Growth Corp. 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 Canopy Growth Corp. 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.