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SHAREHOLDER NOTICE: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Canopy Growth

1. Faruqi & Faruqi is investigating claims against Canopy Growth. 2. Investors allege that Canopy made misleading statements harming their financial interests. 3. CGC's Q3 2025 gross margin fell by 400 basis points to 32%. 4. Company reported wider-than-expected losses of C$1.11 per share. 5. CGC's share price dropped by 27.34% following negative financial disclosures.

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Why Very Bearish?

The legal action and significant financial losses indicate severe investor distrust, affecting CGC's market position and potential for recovery. This reflects historical trends where legal challenges have adversely impacted stock performance, such as in similar cases like Tilray’s past issues in 2020.

How important is it?

The ongoing class action lawsuit and unfavorable financial results directly impact investor sentiment and share price prospects. These factors can lead to increased selling and reduced new investments in CGC stock.

Why Short Term?

Given the immediate legal actions and recent financial disclosures, CGC's stock may continue to face volatility in the short term. It is typical for stocks embroiled in legal troubles to suffer immediate price drops.

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NEW YORK, June 02, 2025 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Canopy Growth To Contact Him Directly To Discuss Their Options If you purchased or acquired securities in Canopy Growth between May 30, 2024 and February 6, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, June 2, 2025 / GLOBE NEWSWIRE / Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Canopy Growth Corporation (“Canopy” or the “Company”) (NASDAQ: CGC) and reminds investors of the June 3, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com. As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Canopy had incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada; (2) the foregoing costs, in addition to certain indirect costs that Canopy incurred in connection with its Storz & Bickel vaporizer devices, were likely to have a significant negative impact on the Company's gross margins and overall financial results; (3) accordingly, Defendants had overstated the efficacy of Canopy's cost reduction measures and the health of its gross margins while downplaying issues with the same; and (4) as a result, Defendants' public statements were materially false and misleading at all relevant times. On February 7, 2025, during pre-market hours, Canopy issued a press release announcing its financial results for the third quarter ("Q3") of its FY 2025. Among other items, Canopy reported that its "[g]ross margin decreased by 400 basis points to 32% in [Q3 2025] compared to [the same quarter the year prior] primarily due to the incremental costs related to the Claybourne infused pre-roll launch in Canada, and an increase in indirect costs of Storz & Bickel vaporizer devices[.]" These factors contributed to Canopy reporting a wider-than-anticipated Q3 2025 loss of C$1.11 per share compared to the C$0.48 per share loss estimated by analysts. The same day, Canopy held a conference call with investors and analysts to discuss its Q3 2025 financial results. During the call, Canopy's Chief Financial Officer, Defendant Judy Hong ("Hong"), revealed that the Company's Claybourne product launch costs were "primarily attributable to [the] higher initial cost to produce Claybourne" products. Defendant Hong also disclosed that the "indirect costs" related to Storz & Bickel vaporizer devices were attributable to, inter alia, shipping costs. On this news, Canopy's common share price fell $0.76 per share, or 27.34%, to close at $2.02 per share on February 7, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.   Faruqi & Faruqi, LLP also encourages anyone with information regarding Canopy’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Canopy Growth class action, go to www.faruqilaw.com/CGC or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/94dcdcde-53a4-4701-9356-84ac71910298

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