Gong v. Neptune Wellness Solutions Inc.

Pomerantz LLP has been appointed Lead Counsel on behalf of Kenneth Rickert, the Lead Plaintiff.

The securities action was brought on behalf of a class of defrauded investors concerning allegations that Neptune Wellness Solutions, Inc. failed to disclose the true cost and financial strain of integrating the assets and operations that it had acquired from SugarLeaf Labs, LLC and Forest Remedies LLC, two commercial hemp companies.

Allegations against Neptune include that: (i) the Company failed to disclose that the cost of Neptune’s integration of the assets and operations acquired in the SugarLeaf Acquisition would be larger than it had acknowledged, placing significant strain on its capital reserves; and (ii) accordingly, it was reasonably foreseeable that Neptune would need to conduct additional stock offerings to raise more capital.

Neptune operates as an integrated health and wellness company that offers turnkey product development and supply chain solutions to businesses and government customers in various health and wellness verticals, such as legal cannabis and hemp, nutraceuticals and white label consumer packaged goods.  The Company also provides cannabis and hemp biomass extraction and purification services; raw material sourcing, formulation, quality control, and quality assurance primarily for omega-3 and hemp-derived ingredients; and formulation and manufacturing solutions for value added product forms comprising tinctures, sprays, topicals, vapor products, and edibles and beverages.

The Pomerantz team included Joshua B. Silverman (Picture), Alexander Hood and Christopher Tourek. 

Involved fees earner: Alexander Hood II – Pomerantz LLP ; Joshua Silverman – Pomerantz LLP ; Christopher Tourek – Pomerantz LLP ;

Law Firms: Pomerantz LLP ;

Clients: Rickert Kenneth;

Sonia Carcano

Author: Sonia Carcano