Labaton Keller Sucharow represents investors in Cronos Group Inc. (Cronos or the Company), a medical and legal marijuana company. Cronos was an early-stage company, and its valuation was based on its ability to grow.
The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. As alleged in the Complaint, Cronos, its Chief Executive Officer, and it’s former (collectively, Defendants) artificially inflated the Company’s revenues by recording “revenue” from fictitious sales. However, as alleged, this is impermissible under generally accepted accounting principles. This allegation was further substantiated when the SEC charged Cronos with accounting fraud. After the fraud was revealed, Cronos was forced to restate its first and third quarter 2019 revenues by 39% and 40%, respectively, and disclosed a material weakness in internal controls.
Labaton Keller Sucharow was appointed Lead Counsel in the matter on October 22, 2020.
Following three years of vigorous litigation, the court initially granted Defendants’ motion to dismiss the Complaint on November 11, 2023. Plaintiffs continued to pursue their claims and received court approval to replead the case on November 29, 2024.
The Parties ultimately reached a settlement-in-principle to resolve the matter for $10 million. Preliminary approval of the settlement was granted on August 4, 2026.
The case is In re Cronos Group Inc. Securities Litigation, No. 2:20-cv-01310 (E.D.N.Y.). Labaton Keller Sucharow represents Lead Plaintiff Keith D. Norman.
Submit Claim Form
If you purchased or otherwise acquired the publicly traded common stock of Cronos on the NASDAQ or any other public U.S. market for trading stocks during the period from May 9, 2019 through March 30, 2020, both dates inclusive, and were allegedly damaged thereby, you may be entitled to a payment from the class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by August 5, 2026. Please read the linked Notice for all your options and deadlines.
Settlement Hearing
A Settlement Hearing is scheduled to be held on November 19, 2026, at 11:00 p.m. (ET) at the United States District Court, Eastern District of New York, 225 Cadman Plaza East, Brooklyn, NY 11201, Courtroom 4 C S.
If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com; 1-888-219-6877.