A proposed class action lawsuit involving Canopy Growth Corporation has been certified by the Ontario Superior Court of Justice, allowing the case to proceed on behalf of shareholders.
The lawsuit alleges misstatements in financial disclosures linked to Canopy’s acquisition of BioSteel, a sports nutrition company. The claims focus on financial reporting in 2022 and 2023, when Canopy issued several corrective disclosures revising previously reported revenue, growth and receivables tied to BioSteel.
Court filings show BioSteel revenue figures were revised downward across multiple reporting periods, in some cases by more than 50 per cent. Growth rates and receivables were also reduced.
Canopy has acknowledged misstatements were made but disputes that they caused losses to shareholders.
The statement of claim names Canopy, former chief executive officer David Klein and former chief financial officer Judy Hong. The allegations have not been proven.
Certification does not determine liability or damages. No trial date has been set.
