January 19, 2021 - The case was voluntarily dismissed.
September 8, 2020 - An investor in shares of Harborside Inc. (OTC: HSDEF) filed a lawsuit in the U.S. District Court for the District of Oregon over alleged violations of Federal Securities Laws by Harborside Inc. in connection with certain allegedly false and misleading statements made between July 2, 2019 and August 12, 2020.
Oakland, CA based Harborside Inc. cultivates, manufactures, distributes, and sells cannabis and cannabis products. Harborside Inc. reported that its annual Total Revenue rose from $0.516 million for the 12 months period that ended on January 31, 2019, to $47.34 million for the 12 months period that ended on December 31, 2019 and that its Net Loss over those respective time periods increased from $4.81 million to $49.45 million.
On July 10, 2020, Harborside Inc. announced that it would not complete the filing of the Restated Audit and Annual Filings by its previously expected filing date of July 10, 2020. The Company also announced that it would continue to be subject to the previously disclosed cease trade order in Canada. Lastly, the Company announced that it would delay its annual shareholders meeting
According to the complaint the plaintiff alleges on behalf of purchasers of Harborside Inc. (OTC: HSDEF) common shares between July 2, 2019 and August 12, 2020, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between July 2, 2019 and August 12, 2020, the defendants made false and/or misleading statements and/or failed to disclose that Harborside had undisclosed material weaknesses and insufficient financial controls, that Harborside’s previously issued financial statements were false and unreliable, that Harborside’s earlier reported financial statements would need restatement, that as a result of the foregoing and subsequent reporting delays, Harborside’s Canadian stock trading would be suspended, that Harborside downplayed the negative impacts of errors and delays regarding its financial statements, and that as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.