Greenlane Holdings, Inc. (Nasdaq: GNLN)
A class action has been filed in the United States District Court for the Southern District of Florida on behalf of purchasers of Greenlane Holdings, Inc. (Nasdaq: GNLN) securities during the period between April 15, 2019 and September 11, 2019 (the “Class Period”).
In April 2019, the Company held its initial public offering (“IPO”) in which it sold more than 6 million common shares at $17.00 per share.
On June 18, 2019, the San Francisco Board of Supervisors unanimously approved the ban on the sale and distribution of e-cigarette products within the city. It also endorsed a ban on the manufacturing of e-cigarette products on city property.
On this news, the Company’s share price fell $2.27, or over 17%, to close at $11 per share on June 19, 2019, on unusually heavy trading volume. Since the IPO, shares of Greenlane has traded as low as $5.39, a nearly 68% decline from the $17 per share IPO price.
The complaint filed in this class action alleges that the Registration Statement was materially false and misleading and omitted to state: (1) that the City of San Francisco had introduced a major initiative to ban the sale of e-cigarette products across three major cities and prohibit the manufacture of products at the headquarters of Greenlane’s key partner, JUUL Labs; (2) that, if approved, the initiative would materially and adversely impact the Company’s financial results and prospects; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you are a current shareholder and/or purchased stock during the period between April 15, 2019 and September 11, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.