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.