Neptune Wellness Solutions Inc.

  • Active

Investigation
03/16/2021

Initial Lawsuit
03/16/2021

Lawsuit Progression
01/04/2022

Investigation

  • Continous Holding
    July 24, 2019 to February 16, 2021
  • Proposed Claim
    Securities Violation

Did Neptune Wellness mislead investors with the acquisition of SugarLeaf and the related impairment of goodwill? Were the following common stock offerings the result of Neptune’s failed integration of SugarLeaf?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We update this post regularly.

Main Event

Q3 2017 Results

02/15/2021

SEC Filing

Neptune reports Q3 2021 revenues of CA$3.32 million and a net loss of CA$73.8 million, down 63.81% and over 1,000% year-over-year, respectively. Neptune attributes the net loss, in part, to a CA$35.6 million impairment of goodwill and a CA$2.1 million impairment of “property, plant and equipment and right-of-use assets related to the acquisition of SugarLeaf in July 2019,” as well as accelerated amortization of CA$13.95 million “also related to the SugarLeaf acquisition.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$1.94 $2.8 $-0.86 -30.71%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 03/16/2021

A Neptune Wellness Solutions Inc. investor filed a federal securities class action lawsuit on behalf of a class consisting of all persons, other than the defendants, who purchased or otherwise acquired Neptune securities between July 24, 2019, and February 16, 2021, both dates inclusive.

  • Filing Date
    03/16/2021
  • Class Period
    07/24/2019 to 02/16/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Pomerantz LLP
  • Case Title
    Gong v. Neptune Wellness Solutions Inc.
  • Docket Number
    2:21-cv-01386
  • Court
    New York Eastern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the cost of Neptune’s integration of the assets and operations acquired in the SugarLeaf Acquisition would belarger than the Company had acknowledged, placing significant strain on the Company’s capital reserves;
(ii) accordingly, it was reasonably foreseeable that the company would need to conduct additional stock offerings to raise more capital;
(iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Defendants

  • Company
    Neptune
  • Chief Executive Officer
    Michael Cammarata
  • Chief Financial Officer
    Mario Paradis
  • Chief Financial Officer
    Claudie Lauzon
  • Chief Financial Officer
    Toni Rinow

Lawsuit progression

  • Docket Number
    2:21-cv-01386
  • Court
    New York Eastern District Court

Lead Counsel

01/04/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Amended Complaint

02/16/2022

This is a federal securities class action on behalf of a class consisting of all persons who purchased or otherwise acquired Neptune securities on the NASDAQ or another trading venue within the United States between July 24, 2019, and July 15, 2021, both dates inclusive.

  • Updated Class Period
    07/24/2019 to 07/15/2021
  • Free File
    Amended Complaint

    • Operative complaint

Motion to Dismiss

08/05/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”NEPT” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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