SAN FRANCISCO, Jan. 26, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, announces the filing of a securities fraud class action lawsuit against GW Pharmaceuticals (NASDAQ:GWPH) related to the Company’s misstatements about effective internal controls, and alerts investors there is a March 21, 2016 lead plaintiff deadline.
If you suffered losses because of your purchases of GW Pharmaceuticals between December 4, 2014 and January 8, 2016, or have information that will help our continuing investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing GWPH@hbsslaw.com or visiting https://www.hbsslaw.com/cases/GWPH. The lawsuit was filed in the U.S. District Court for the Southern District of New York and investors have until March 21, 2016 to move the court to participate as a lead plaintiff.
GW Pharmaceuticals is a British biopharmaceutical company that discovers, develops, and commercializes cannabinoid prescription medicines. On January 10, 2016, The Sunday Times of London reported that in its annual report the Company disclosed that its internal financial controls were not effective as of September 30, 2015. It also revealed that management had determined that it lacked effective controls over the completeness and valuation of clinical trial accruals. The annual report went further and stated that management does not have sufficiently precise controls to evaluate the completeness and accuracy of the calculation of clinical trial accruals due to the incorrect allocation of expenditure to clinical studies and that the Company lacks sufficiently precise control to ensure completeness of clinical trial accruals in connection with contractual progress payment liabilities.
Following this news, GW Pharmaceuticals shares fell $3.55, or nearly 6%, to close at $56.31 per share on January 11, 2016.
The complaint alleges that GW Pharmaceuticals violated the securities laws by failing to disclose to investors that the Company lacked effective internal controls, lacked effective internal controls over their clinical trial accruals, and as a result their statements were false, misleading, and lacked a reasonable basis throughout the class period.
Whistleblowers: Persons with non-public information regarding GW Pharmaceuticals should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email GWPH@hbsslaw.com.
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Contact: Reed Kathrein, 510-725-3000
Source:Hagens Berman Sobol Shapiro LLP