A lawsuit was filed on behalf of investors in KushCo Holdings, Inc. (OTC: KSHB) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 05/20/2019 -- An investor, who purchased shares of KushCo Holdings, Inc. (OTC: KSHB), filed a lawsuit over alleged Securities Laws violations by KushCo Holdings, Inc.
Investors who purchased shares of KushCo Holdings, Inc. (OTC: KSHB) have certain options and for certain investors are short and strict deadlines running. Deadline: July 1, 2019. OTC: KSHB investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Garden Grove, CA based KushCo Holdings, Inc. primarily engages in the wholesale distribution of packaging supplies in the United States, Canada, Europe, and internationally. In the past several years, KushCo Holdings, Inc has expanded its services through the acquisition of several companies in the cannabis industry. For example, in May 2017, KushCo Holdings, Inc acquired CMP Wellness LLC ("CMP Wellness"), a privately-held manufacturer and distributor of Med-ePen brand vaporizer pens, cartridges, tanks, and accessories. Then, in May 2018, KushCo Holdings, Inc acquired Summit Innovations, LLC ("Summit"), a distributor of hydrocarbon products, such as propane and butane, to the legal cannabis industry. Finally, in July 2018, KushCo Holdings, Inc acquired The Hybrid Creative ("Hybrid"), a self-described premier creative agency for cannabis ventures, including branding, marketing, web, and strategy. On April 9, 2019, KushCo Holdings, Inc announced in a filing with the SEC the Company's decision to restate prior period financial statements for fiscal years 2017 and 2018 for non-cash items related to acquisitions of CMP Wellness, Summit, and Hybrid.
KushCo Holdings, Inc disclosed in a SEC filing in April 2019 that KushCo had inaccurately accounted for certain shared-settled contingent consideration relating to its CMP Wellness, Summit, and Hybrid acquisitions, by recording their respective earnout arrangements as equity rather than as liabilities.
The plaintiff claims that between July 13, 2017 and April 9, 2019, the Defendants made false and/or misleading statements and/or failed to disclose that KushCo Holdings, Inc made material accounting errors in connection with its acquisitions of CMP Wellness, Summit, and Hybrid, that as a result, KushCo Holdings, Inc's previously issued financial statements as of and for the fiscal years ended August 31, 2018 and August 31, 2017, included in the Company's Annual Reports on Form 10-K for such periods, and financial statements as of and for the quarterly periods ended May 31, 2017, November 30, 2017, February 28, 2018, May 31, 2018 and November 30, 2018, included in the Company's Quarterly Reports on Form 10-Q for such periods, could not be relied upon, that KushCo Holdings, Inc's net loss for the fiscal year ended August 31, 2018, was more than twice as high than previously reported, that KushCo Holdings, Inc and its management's assurances that its financial statements for those fiscal years and periods were accurate and fairly reported could not be relied upon, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of KushCo Holdings, Inc. (OTC: KSHB) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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