According to the Complaint, Canopy, together with its subsidiaries, engages in engages in production, distribution, and sale of cannabis in Canada.

The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing weak demand for its softgel and oil products; (2) as a result, the Company would be forced to take a CA$32.7 million restructuring charge due to poor sales, excessive returns, and excess inventory; and (3) due to the foregoing, Defendants' statements about Canopy's receivables, business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.