Overview

A class action lawsuit has been filed against Canopy Growth Corporation (“Canopy” or the “Company”) and certain of the Company’s current and former senior executive officers alleging violations of the federal securities laws.  The Company’s common shares trade in an efficient market on the NASDAQ under the ticker symbol “CGC.”

The Canopy class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Canopy securities between May 30, 2024, and February 6, 2025, both dates inclusive (the “Class Period”).

Canopy, together with its subsidiaries, produces, distributes, and sells cannabis and hemp-based products for recreational and medical purposes.  The Company’s products include, inter alia, pre-rolled joints (i.e., cannabis cigarettes) and its Storz & Bickel brand vaporizer devices.  In November 2024, Canopy announced that it had launched “award-winning California grown Claybourne brand” pre-rolled joints in Canada through an exclusive licensing agreement with Claybourne Co. (“Claybourne”).

As Canopy has consistently acknowledged in its U.S. Securities and Exchange Commission filings, the cannabis industry is a margin-based business in which gross profits depend on the excess of sales prices over costs.  Accordingly, Canopy’s efforts to achieve and maintain healthy margins and costs feature prominently in Defendants’ narratives about the Company’s path to profitability, which is of particular importance to investors and analysts.  Indeed, at all relevant times, Defendants stressed Canopy’s implementation of various cost reduction measures to drive improved gross margins and profitability, including, inter alia, measures to reduce pre-rolled joint production costs and overall product distribution costs.  Throughout the Class Period, Defendants also repeatedly touted the positive impact that these measures were purportedly having, and would purportedly continue to have, on the Company’s profitability and gross margins in its fiscal year 2025.

The Canopy class action lawsuit alleges that Defendants, throughout the Class Period, made materially false and misleading statements regarding Canopy’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Canopy had incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada; (2) the foregoing costs, in addition to certain indirect costs that Canopy incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company’s gross margins and overall financial results; (3) accordingly, Defendants had overstated the efficacy of Canopy’s cost reduction measures and the health of its gross margins while downplaying issues with the same; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired Canopy securities between May 30, 2024, and February 6, 2025, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Canopy class action lawsuit is June 3, 2025.