Verano Holdings Corp. (VRNOF)
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Verano Holdings Corp. (“Verano” or “the Company”) (OTCMKT: VRNOF). Investors who purchased Verano shares are encouraged to obtain additional information and assist the investigation.
The investigation concerns whether Verano violated federal securities laws.
On July 27, 2022, Verano filed a Notice with the U.S. Securities and Exchange Commission, disclosing that “[o]n July 26, 2022, as a result of internal compensation and tax reviews, certain accounting errors were uncovered and in consultation with Verano Holding Corp.’s (the ‘Company’) management, the Audit Committee of the Board of Directors (the ‘Audit Committee’) of the Company determined that the Company will be required to restate” its Unaudited Condensed Interim Consolidated Financial Statements for the quarters ended March 31, 2021, June 30, 2021, September 30, 2021, March 31, 2022, and for the year ended December 31, 2021. Verano specified that “the Audit Committee determined that the Company’s stock-based compensation expense in connection with the Company’s restricted stock units was understated in each of the Prior Period Financials (i) primarily as a result of calculating such expense as if each restricted stock unit vested into one share of the Company’s Class A subordinate voting shares (‘SV Shares’) instead of 100 SV Shares and (ii) to a lesser extent, as a result of, among other things, using the Black-Scholes option pricing model to value such restricted stock units instead of the date of grant trading price of the SV Shares underlying such restricted stock units, as listed on the Canadian Securities Exchange. As a result of such understated stock-based compensation expense, the Company’s tax expense in each of the Prior Periods Financials was overstated, and accordingly, the Company’s tax obligation will be reduced.” On this news, Verano’s stock price fell $0.24 per share, or 3.72%, to close at $6.22 per share on July 28, 2022.
If you are aware of any facts relating to this investigation or purchased Verano shares you can assist this investigation. You can also contact Peretz Bronstein or law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits. The firm has recovered hundreds of millions of dollars for investors nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.