The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Verano Holdings Corp. (“Verano” or “the Company”) (OTCMKTS: VRNOF) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Verano filed a notice with the SEC on July 27, 2022, announcing that “on 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” the Company’s 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. According to the Company, “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.”
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The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
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