Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) has seen a number of mixed reports emerge in recent days, but Curaleaf stock is trading up slightly.
First Company to Sell Cannabis Tablets in Florida
This morning, the US medicinal cannabis firm became the first company to distribute cannabis tablets in Florida. Curaleaf Holdings, which operates 49 dispensaries across the US, already sells the mint-flavored tablets in Connecticut, New Jersey, Maryland, and New York, with plans to launch in additional states. The tablets were described as “a refreshing form of the medication that offers patients convenience, portability, and ease of use as the tablet disintegrates on the tongue and is slow-acting.” Curaleaf stock is up about 1% following the news.
Curaleaf Hit By Lawsuit?
It hasn’t been all positive reporting on Curaleaf Holdings recently. Yesterday, Pomerantz law firm issued a reminder to investors who made losses on Curaleaf stock between November 21, 2018, and July 22, 2019, of the upcoming deadline for a class action lawsuit. The complaint alleges that throughout this 8-month period, Curaleaf made “materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.”
The action specifically relates to claims made by Curaleaf on its website and social media channels about CBD products that were to be used as drugs and dietary supplements, which is against the law. Curaleaf also sold unapproved animal products on its website. Such conduct resulted in a warning letter from the FDA, which caused Curaleaf shares to fall by 7.27% on July 23, and this is where the investors’ grievances arise from.
Top Spender on Lobbying
In spite of the mixed press, Curaleaf shares are up about 60% in the year to date. This could be in part down to the fact that Curaleaf Holdings was recently reported as being the top spender on lobbying activities for cannabis. Curaleaf spent a reported $400,000 on lobbying, with government filings indicating that senior company representatives held meetings with the Executive Office of the President.
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