LOS ANGELES–(BUSINESS WIRE)– Goldberg Law PC (www.Goldberglawpc.com) announces that a class action lawsuit has been filed against GW Pharmaceuticals plc (“GW Pharmaceuticals” or the “Company”) (Nasdaq: GWPH). Investors who purchased or otherwise acquired shares between December 4, 2014 and January 8, 2016, (the “Class Period”), are encouraged to contact the firm in advance of the March 21, 2016, lead plaintiff motion deadline.
If you are a shareholder who suffered a loss during the Class Period, we advise you to contact Michael Goldberg or Brian Schall, of Goldberg Law PC, 13650 Marina Pointe Dr. Suite 1404, Marina Del Rey, CA 90292, at 800-977-7401, to discuss your rights without cost to you. You can also reach us through the firm’s website at http://www.Goldberglawpc.com, or by email at firstname.lastname@example.org.
NEW YORK, NY — (Marketwired) — 01/27/16 — Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in GW Pharmaceuticals plc (“GW Pharmaceuticals” or the “Company”) (NASDAQ:GWPH) of the March 21, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased GW Pharmaceuticals’ American Depositary Receipts from December 4, 2014 through January 8, 2016 (the “Class Period”). The case, Urban v. GW Pharmaceuticals PLC et al, No. 1:16-cv-00472, was filed on January 21, 2016 and has been assigned to Judge Robert W. Sweet.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the Company lacked effective internal financial controls over completeness and valuation of clinical trial accruals.
Specifically, the lawsuit alleges that on January 10, 2016, it was revealed that GW Pharmaceuticals disclosed to the SEC material weaknesses in its internal control over financial reporting for the year ended September 30, 2015. On this news, Company share price fell $3.55 to close at $56.31 per share on January 11, 2016 — a nearly 6% drop.
SAN DIEGO & CAMBRIDGE, England–(BUSINESS WIRE)–Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Southern District of New York. The complaint alleges that officers and directors of GW Pharmaceuticals plc (NASDAQGM: GWPH) violated the Securities Exchange Act of 1934 between December 4, 2014 and January 8, 2016, by making materially false and misleading statements about GW Pharmaceuticals’ business prospects. GW Pharmaceuticals plc, a biopharmaceutical company, together with its subsidiaries, engages in discovering, developing, and commercializing cannabinoid prescription medicines.
View this information on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/gw-pharmaceuticals-plc
GW Pharmaceuticals Accused of Failing to Implement Adequate Internal Controls
According to the complaint, GW Pharmaceuticals filed a Form 20-F and several Forms 6-K with the U.S. Securities and Exchange Commission in 2014 and 2015, attesting to the accuracy of the financial information and affirming that any material changes to the company’s internal controls over financial reporting were disclosed. However, the complaint alleges these statements were false because the company failed to disclose that it lacked effective internal financial controls, as well as effective controls over completeness and valuation of clinical trial accruals.
On December 7, 2015, GW Pharmaceuticals disclosed in its annual report for the fiscal year ended September 30, 2015, that its internal financial controls were not effective as of September 30, 2015. The company stated that if the statements were prepared improperly, it would be required to restate its financial statements, which could result in a loss of investor confidence and a decline in the price of its American Depository Shares. The Form further stated that it lacked sufficient controls to ensure completeness of clinical trial accruals in connection with contractual progress payment liabilities. Then, on January 10, 2016, an article in The Sunday Times disclosed that GW Pharmaceuticals’ management had determined that it lacked effective controls over the completeness and valuation of clinical trial accruals. On this news, GW Pharmaceuticals stock fell $3.55 per share, or nearly 6%, to close at $56.31 per share on January 11, 2016.
February 02, 2016, 10:00:11 AM EDT By Todd Campbell, The Motley Fool, Motley Fool CommentWhat: Following reports that the company’s financials may lack adequate accounting controls, shares in GW Pharmaceuticals, plc fell 25.3% in January, according to S&P Capital IQ .
So what: Early last month, the company disclosed that it has material weaknesses in its accounting practices related to clinical trial costs and milestones.
That’s concerning given that there’s tremendous trial activity occurring at the company.
GW Pharmaceuticals is one of the most committed drugmakers to the study of marijuana-derived medicine and its trials have included research into marijuana’s use in cancer pain, diabetes, schizophrenia, and epilepsy.
In December, the company reported that its R&D costs were $25.5 million in its fiscal fourth quarter, up 107% from last year.
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