Settlement Reached for $10 Million with Cronos Group Inc. in In re Cronos Group Inc. Securities Litigation, No. 20-cv-01310 (E.D.N.Y.) (the U.S. Action)

Labaton Keller Sucharow serves as court-appointed Lead Counsel in a securities class action pending in the U.S. District Court for the Eastern District of New York against Cronos Group Inc. (Cronos or the Company), a global medical and legal cannabinoid company with operations in Canada and Israel, as well as distribution in additional international markets.

The U.S. 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 sought to establish various brands of cannabis products in different markets, develop a supply chain, and develop intellectual property related to cannabis products.  Lead Plaintiff alleged that Defendants made false and misleading statements about Cronos’s revenue during the Class Period, as a result of improper revenue recognition related to three “round trip” transactions that led to restatements reducing its 1Q2019 and 3Q2019 revenue.

On November 11, 2023, the U.S. Court issued an order granting Defendants’ motion to dismiss the Complaint with prejudice.  The Court determined that the allegations, taken collectively, did not adequately plead the required level of intent, “scienter,” under Section 10(b) of the Exchange Act and, as a result, also dismissed Lead Plaintiff’s claims under Section 20(a) of the Exchange Act.

On December 1, 2023, Lead Plaintiff moved for reconsideration of the dismissal order, which Defendants opposed. On November 29, 2024, the U.S. Court granted Lead Plaintiff’s motion for reconsideration and permitted Lead Plaintiff to file a further amended complaint and for Defendants to file another motion to dismiss.

The Parties reached an agreement to settle the matter for $10 million (pending court approval) in December 2025.

The case is In re Cronos Group Inc. Securities Litigation, No. 2:20-cv-01310-ENV-JMW (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 Group Inc. 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 (the Class Period), and were allegedly damaged thereby, irrespective of your country of residence, you may be entitled to a payment from the settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by November 9, 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 a.m. (ET) either remotely or in person, at the United States District Court for the Eastern District of New York, United States Courthouse, Courtroom 4 C S, 225 Cadman Plaza East, Brooklyn, NY 11201.

If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com; 1-888-219-6877; or contact the Claims Administrator at 1-877-226-4986.    Additional information about the Settlement can be found at www.CronosUSSecuritiesSettlement.com.