PHILADELPHIA, July 01, 2019 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against KushCo Holdings, Inc. KSHB ("KushCo" or the "Company") on behalf of investors who purchased shares of the Company's common stock between July 13, 2017 and April 9, 2019, inclusive (the "Class Period").
KushCo stockholders who acquired their shares of common stock prior to April 9, 2019 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or via email at skaskela@kaskelalaw.com, to discuss this action and their legal rights and options. Additional information may also be found at http://kaskelalaw.com/case/kushco-holdings-inc/.
On April 9, 2019, KushCo disclosed that it had "identified inadvertent errors in the accounting for certain shared-settled contingent consideration (‘Contingent Consideration') relating to its acquisition of CMP Wellness in May 2017, Summit Innovations in May 2018, and Hybrid Creative in July 2018," and that the Company would be restating certain of its previously issued financial statements. Additionally, the Company disclosed that "[m]anagement has concluded that the Company's internal control over financial reporting and its disclosure controls and procedures were not effective as of the end of the respective restatement periods."
Among other things, the shareholder class action complaint alleges that defendants made materially false and misleading statements to investors during the Class Period, and failed to disclose that: (i) KushCo made material accounting errors in connection with its acquisitions of CMP Wellness, Summit, and Hybrid; (ii) as a result, certain of KushCo's previously issued financial statements could not be relied upon; (iii) KushCo's net loss for the fiscal year ended August 31, 2018, was more than twice as high than previously reported; and (iv) KushCo 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.
IMPORTANT DEADLINE: Investors who purchased KushCo's stock during the Class Period may, no later than July 1, 2019, seek to be appointed as a lead plaintiff representative of the class.
KushCo stockholders are encouraged to contact Kaskela Law LLC to discuss this action and their legal rights and options. Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
D. Seamus Kaskela, Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
(484) 258 – 1585
(888) 715 – 1740
www.kaskelalaw.com
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