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Published May 12, 2025
Canopy Growth gave investors a major high when it said it was rolling in the green and margins were expanding. So, it was a big buzz kill when investors discovered not only were Canopy’s margins down, but its shipping costs were out of control, too. Disappointed investors burned their Canopy shares, sending the stock’s price crashing 27%. Now some of those investors are taking legal action.
Canopy Growth is a cannabis grower and distributer. Throughout 2024, it boasted improved margins, especially for it's vape brand. Company executives also claimed improved manufacturing efficiency for its pre-rolled joints helped Canopy’s bottom line.
But, lawsuit says that was all just a trip.
In February 2025, Canopy issued a press release stating its margins were down. Executives blamed the roll-out of its Claybourne pre-roll joints, which costed more than expected, and increased shipping costs related to it's vape brands.
Upset investors sold off their shares, sending Canopy stock crashing. More investors are now joining the lawsuit.