NASDAQ GM
GWPH

GW Pharmaceuticals plc

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against GW Pharmaceuticals plc (NASDAQ GM: GWPH)

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the American Depository Receipts (“ADRs”) of GW Pharmaceuticals plc (“GW Pharmaceuticals” or the “Company”) (NASDAQ GM: GWPH) between December 4, 2014 and January 8, 2016, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased ADRs of GW Pharmaceuticals during the Class Period, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on January 10, 2016, The Sunday Times reported that GW Pharmaceuticals had disclosed in its annual report for the fiscal year ended September 30, 2015 (the “FY 2015 20-F”), filed with the SEC the previous month, that its internal financial controls were not effective as of September 30, 2015, and further disclosed that management had determined that it lacked effective controls over the completeness and valuation of clinical trial accruals.  Specifically, the 2015 20-F reported that management lacked sufficiently precise controls: (1) to evaluate the completeness and accuracy of the calculation of clinical trial accruals due to the incorrect allocation of expenditure to clinical studies; or (2) to ensure completeness of clinical trial accruals in connection with contractual progress payment liabilities.

On this news, ADRs of GW Pharmaceuticals dropped almost 6%, closing at $56.31 per share on January 11, 2016, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than March 21, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

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