A law office recently announced that it filed a securities class action lawsuit against a hemp oil company after shareholders alleged that the company violated federal securities laws.
Lieff Cabraser Heimann and Bernstein, LLP, noted that the lawsuit was filed against the leaders of CannaVEST Corp., and affects those shareholders who acquired interests in the company during the class period between May 20, 2013, and April 3, 2014.
The legal claim made allegations that CannaVest violated the Securities Exchange Act of 1934, due to statements that were false or misleading about its sales performance. This includes the Form 10-Q for the first three quarters of 2013. When this information was released on April 3, 2014, the company's stock declined by $7.30, or 22.39 percent, to $25.30 per share.
On April 14, 2014, the company also noted that sales for multiple quarters were overstated, which hurt its stock further.
For shareholders who are interested in learning more about the lead plaintiff position, it is important to discuss this with the court and file the proper paperwork by June 23, 2014. This position is necessary for the case itself, but no shareholder is obligated to apply for the position, and they will not be penalized for remaining an absent class member. That group will still be able to collect in the event of a financial return.
It is also an option for shareholders to learn more about the lawsuit itself, how it may affect their rights and interests, as well as the lead plaintiff position by speaking with the law office. The best person to discuss these matters with is Sharon Lee, who can be reached by telephone. Additionally, the law office's website provides further information.
Second lawsuit begins
Another class action claim was filed by a law firm for many of the same reasons listed above.
Law office Federman and Sherwood noted that the lawsuit against CannaVEST was filed in the U.S. District Court for the Southern District of New York on April 29, 2014. This was for allegations that the company violated Sections 10(b), 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934.
For more information on this action, it is also an option to speak with this law office. The best person to talk with is K. Lynn Nunn, who is available by email or email. The law firm also has more information on its website.