If you are an investor in CV Sciences (OTCQB:CVSI), listen up! More CV Sciences lawsuits have been announced following the Citroen report that damaged stocks last August.
Today, a securities class action lawsuit has been filed in the United States District Court for the District of Nevada against the company.
So what’s going on? And should you be concerned? Only if you invested in the company between June 19th, 2017, and August 20th, 2018.
CV Sciences Lawsuits
Back in August, Citroen Research reported that CV Sciences made false or misleading statements regarding one of its patents.
The company’s Patent #15/426,617, received a non-final rejection and a final rejection from USPTO in 2017. However, the company failed to disclose that its patent had, in fact, been rejected.
Furthermore, the company was accused of continuing “the hype” fully in the knowledge that its patent had been disapproved.
Stocks Suffered as Did Investors
As you can imagine, when the news broke, the stocks dropped from over $7 to below $3. A bevy of CV Sciences lawsuits has since been springing up.
Understandably, investors were not happy.
The complaint states that the non-final rejection was delivered on April 27th, 2017 and the final rejection delivered on December 14th, 2017.
CV Sciences had ample time and opportunity to admit the true details regarding the patent, but it chose not to.
The CV Sciences lawsuits have claimed that the company failed to disclose pertinent information to its investors.
Therefore statements made by the company regarding business, operations, potentials, and forward-moving plans were, in effect, false, or at least “lacked a reasonable basis.”
By misrepresenting the status of one of its key patents, traders would have made blind investments into the company, believing something entirely different, and no doubt, suffered great damages when the stock dropped dramatically on the unveiling of the truth.
But Rebounds Happen
The scandal is still ongoing. CV Sciences lawsuits have yet to be settled on this matter, but despite this, the company has been rebounding and since September has slowly but surely pared those great losses.
Today, CVSI stock is up over 5% at $5.18, on the recent news that the company’s flagship product PlusCBDOil was featured heavily on ‘The Dr.Oz Show.’
Also, the company announced earlier today that it will be a featured Panelist at TheStreet’s Investing Event on October 13th.
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