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TMCNet:  Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against CannaVEST Corp.

[May 01, 2014]

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against CannaVEST Corp.

WILMINGTON, Del. --(Business Wire)--

Rigrodsky & Long, P.A.:

  • Do you, or did you, own shares of CannaVEST Corp. (OTC QB: CANV)?
  • Did you purchase your shares before May 20, 2013, or between May 20, 2013 and April 3, 2014, inclusive?
  • Did you lose money in your investment in CannaVEST Corp.?
  • Do you want to discuss your rights?

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, 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 common stock of CannaVEST Corp. ("CannaVEST" or the "Company") (OTC QB: CANV) between May 20, 2013 and April 3, 2014, 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 shares of CannaVEST during the Class Period, or purchased shares prior to the Class Period and still old CannaVEST, 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; or at: http://www.rigrodskylong.com/investigations/cannavest-corp-canv.


CannaVEST manufactures, markets, and sells products containing hemp oil, including (CBD). CBD is one of at least 65 cannabinoids found in hemp, and is non-psychoactive. 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. Specifically, the Complaint alleges that the defendants concealed from the investing public: (i) that the Company was misrepresenting, and inflating, its sales; and (ii) that the Company was misrepresenting, and exaggerating, its amount of goodwill. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on April 3, 2014, the Company filed a Form 8-K with the U.S. Securities and Exchange Commission ("SEC (News - Alert)") announcing that it had misreported its financial position on the Forms 10-Q for the quarters ended March 31, 2013, June 30, 2013, and September 30, 2013, and as such, the 2013 First, Second, and Third Quarter Forms 10-Q could no longer be relied upon.

On this news, shares in CannaVEST fell over 20%, closing at $25.30 per share on April 3, 2014, on unusually heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than June 23, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. 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.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.


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