Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Champignon Brands, Inc. and Encourages Investors to Contact the Firm
NEW YORK (STL.News) Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of investors that purchased Champignon Brands, Inc. (Other OTC: SHRMF) securities between March 27, 2020, and February 17, 2021, inclusive (the “Class Period”). Investors have until June 9, 2021, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On February 17, 2021, Champignon issued a press release entitled “Champignon Brands to Restate Financial Statements and MD&A has Prepared CSE Listing Statement.”
On this news, Champignon’s stock price fell 10% to close at $0.687 per share on February 17, 2021.
The complaint, filed on April 10, 2021, alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Champignon had undisclosed material weaknesses and insufficient financial controls; (2) Champignon’s previously issued financial statements were false and unreliable; (3) Champignon’s earlier reported financial statements would need to be restated; (4) Champignon’s acquisitions involved an undisclosed related party; (5) as a result of the foregoing and subsequent reporting delays and issues, the British Columbia Securities Commission would suspend Champignon’s from trading; and (6) as a result, defendants’ statements about Champignon’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased Champignon securities during the Class Period and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at [email protected], telephone at (212) 355-4648.