Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in KushCo Holdings (OTC:KSHB) in connection to alleged securities law violations by KSHB. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in KushCo Holdings between July 13, 2017 and April 9, 2019.
The class action complaint specifically alleges that during the period in question, KSHB provided false and/or misleading material information and/or failed to disclose adverse material information to the public, chiefly: that during its acquisitions of three companies—CMP Wellness LLC, Summit Innovations, LLC, and The Hybrid Creative—the company made accounting mistakes; that financial statements released earlier by the company, for fiscal years ending on August 31, 2018 and August 31, 2018, were not reliable; that the company’s net loss for that latter year, ending August 31, 2018, more than doubled what the company had reported in its previous statement; that representations made by the company and its managing officers that those previously released statements were accurate could no longer be relied upon either; and that consequently the company’s statements to the public during the relevant period were false and misleading. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, KushCo Holdings is the parent company of brands involved in “specialized solutions for the cannabis market.” These brands include Kush Supply Company, a platform for the distribution of packaging, supplies, and accessories for the cannabis and CBD industry; Kush Energy, a provider of hydrocarbon gases and solvents; Hybrid Creative, a design agency “for clients across several industries”; and Koleto Innovations, which performs research and development “driving intellectual property development and acquisitions.” The company was founded in 2010 and describes itself as having sold more than one billion units, with customers comprising “more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers” in three continents: North America, South America, and Europe. The company states that it has facilities in the US’s five largest cannabis markets and sales operations in every major US cannabis market; it also clarifies that “it has no direct involvement with the cannabis plant” and that none of its products contain THC or CBD. The company trades over-the-counter under the symbol KSHB.