PharmaCielo Ltd. (OTC: PCLOF) Investor Securities Class Action Lawsuit 03/06/2020

If you purchased shares of PharmaCielo Ltd. (OTC: PCLOF), you have certain options and for certain investors are short and strict deadlines running. Deadline: May 5, 2020. OTC: PCLOF investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
PharmaCielo
Case Name: 
PharmaCielo Shareholder Class Action Lawsuit 03/06/2020
Case Status: 
Lawsuit Filed
Affected Securities
OTC: PCLOF
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/06/2020
Class Period Begin: 
06/21/2019
Class Period End: 
03/02/2020
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/05/2020
Summary: 

An investor in shares of PharmaCielo Ltd. (OTC: PCLOF) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by PharmaCielo Ltd. in connection with certain allegedly false and misleading statements made between June 21, 2019 and March 2, 2020.

Canadian based PharmaCielo Ltd., through its subsidiary, PharmaCielo Colombia Holdings S.A.S., cultivates, processes, produces, and supplies medicinal-grade cannabis oil extracts and related products in Colombia and internationally.
On March 2, 2020, a report was published alleging that PharmaCielo was “nothing more than the latest self-enrichment scheme drummed up by its co-founder Anthony Wile, who had been charged by the SEC over allegations of securities fraud, stock promotion and market manipulation in the past.” Hindenburg also visited PharmaCielo’s purported greenhouse facilities in Colombia and found that the site is “nothing more than an empty field covered in weeds.”

Shares of PharmaCielo Ltd. (OTC: PCLOF) declined from $8.95 per share in March 2019 to as low as $0.46 per share on March 12, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of PharmaCielo Ltd. (OTC: PCLOF) common shares between June 21, 2019 and March 2, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between June 21, 2019 and March 2, 2020, the defendants made false and/or misleading statements and/or failed to disclose that PharmaCielo engaged in an undisclosed related party transactions with General Extract LLC, that PharmaCielo engaged in misleading transactions and loans with General Extract LLC and XPhyto Therapeutics Corp., that PharmaCielo's Research Technology and Processing Centre was never on-schedule and is delayed, that the Rionegro facility is located on a floodplain and contaminated with mold and pesticides from its previous tenants, that PharmaCielo's Cauca Department land has never been utilized by the Company and is idle, and that as a result, Defendants' public statements were materially false and/or misleading at all relevant times.