Lawsuit alleges cannabis packaging company KushCo misled investors

A group of shareholders filed a lawsuit against California-based KushCo, alleging that the company misled investors on the accounting behind a number of acquisitions, violating state and federal laws in the process.

According to the court filing, KushCo “made false and/or misleading statements and/or failed to disclose that …. it made material accounting errors in connection with its acquisitions of CMP Wellness, Summit (Innovations) and (The) Hybrid (Creative)” between July 2017 and the present.”

The company did not immediately respond to queries from Marijuana Business Daily.

KushCo said in April it would restate some of its financial results stemming from related accounting errors.

The following month, the company hired Cathleen Lu as vice president of financial planning and analysis to oversee the financial planning, forecasting, reporting and analysis across various businesses, including acquisitions and investments.

KushCo, which has expressed interest in uplisting, currently trades on over-the-counter exchanges in the United States under the ticker symbol KSHB.

7 comments on “Lawsuit alleges cannabis packaging company KushCo misled investors
  1. Rex D Stock on

    Another god damn Pink Slip OTC company out there lying through their stinking teeth polluting the market and stealing money from operations who are run by crooks, liars and thieves.

    Reply
  2. Billy on

    Let’s not trash small time drug dealers but massive criminal enterprises, ie organizations run by cartels, let’s call them out.

    Reply
  3. Bruce Cohn on

    I invested in KUSHCO about a year ago, I have watched it go up and down like a yo-yo and today my yo-yo is close to laying on the ground. I’m not a kid anymore, it appears I gambled and lost.

    Reply
  4. Brandon on

    summit innovations should have been thrown in jail well before the acquisition by Kush. It was brought to Kush’s attention before the acquisition in writing that Summit Innovations was storing Gas Innovations’ explosive gases illegally in public storage units where a small leak could have killed innocent people and they still went through with the merger. I can only imagine how much worse it is internally if that’s where they started.

    Reply

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