Kaplan Fox Updates Investors On Investigation Of CannTrust Holdings Inc. (CTST)

NEW YORK, Aug. 9, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) continues to investigate claims on behalf of investors who purchased shares of CannTrust Holdings Inc. ("CannTrust" or the "Company") CTSTCNTTF. 

On August 9, 2019, before the opening of trading, CannTrust issued a press release titled "CannTrust Announces the Withdrawal of Auditors' Report." The Company disclosed that its "independent auditor, KPMG LLP, Chartered Professional Accountants ('KPMG'), has informed the Company that effective August 8, 2019, it is withdrawing its report dated March 27, 2019 on the Company's consolidated financial statements as at and for the year ended December 31, 2018 and its interim report to the Audit Committee dated May 13, 2019 on the unaudited condensed interim consolidated financial statements as at and for the three month period ended March 31, 2019 (collectively, the 'KPMG Reports'), and therefore, the KPMG Reports should no longer be relied upon. KPMG remains CannTrust's independent auditor."

Previously, on August 2, 2019, the Company issued a press release titled "CannTrust Announces Anticipated Late Filing of Financial Statements and Proposed Management Cease Trade Order" in which the Company announced that "it will likely miss its filing deadline (the "Filing Deadline") of August 14, 2019 to file an interim financial report for the three and six month periods ended June 30, 2019, an[d] interim management's discussion and analysis for the corresponding period and certifications of interim filings ("Q2 Filings")." The Company further stated that its "Management is of the view that there is significant uncertainty with respect to the potential impact of pending Health Canada decisions on the valuation of the Company's inventory and biological assets and revenue recognition."

Moreover, the Company "has informed staff of the Ontario Securities Commission (the "OSC") about its anticipated delay of the Q2 Filings and potential need for Restated Financials . . . ."  The Company also stated that the "staff of the OSC advised the Special Committee's legal counsel that an investigation has been opened into matters and parties related to CannTrust and the investigation has been assigned to the Joint Serious Offences Team of the Enforcement Branch of the OSC."

In pre-market trading on August 9, 2019, CannTrust shares declined over 10%.

If you invested in CannTrust between November 14, 2018 and July 12, 2019 (the "Class Period") and suffered losses you are included in the putative class of investors.

If you are a member of the proposed Class, you may move the court no later than September 9, 2019 to serve as a lead plaintiff for the proposed Class.  You need not seek to become a lead plaintiff in order to share in any possible recovery. 

If you purchased CannTrust shares on the New York Stock Exchange or other U.S. trading platform, and would like to discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling 800-290-1952. 

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about your rights or interests, please contact:

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: jcampisi@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com

SOURCE Kaplan Fox & Kilsheimer LLP