Aurora Cannabis $4B Collapse —Could It Be Avoided?

Aurora Cannabis made its [NYSE debut in October 2018](https://www.newswire.ca/news-releases/aurora-cannabis-inc-announces-results-for-the-fourth-quarter-and-2018-fiscal-year-694175781.html) with bold promises of dominating the cannabis industry. Its stock soared to over $1,200 in early 2019, fueled by ambitious growth plans and acquisitions. https://preview.redd.it/lm5ffez0wbie1.png?width=2058&format=png&auto=webp&s=df79b8411ae4b98907ec16140433c6403cd392c0 But by late 2019, analysts raised red flags about oversupply in the Canadian market, inventory backlogs, and regulatory challenges. Aurora missed profitability targets in September 2019, [reported a 25% revenue drop by November](https://globalnews.ca/news/6172734/aurora-cannabis-medicine-hat-denmark-construction-halted/), and paused construction on major production facilities. Adding to investor concerns, the company was accused of inflating financial metrics with a $21.7M “round-trip sale” of cannabis biomass. By the end of 2019, Aurora’s stock had plummeted over 73%, wiping out $4 billion in shareholder value. https://preview.redd.it/gk2qzw22wbie1.png?width=2129&format=png&auto=webp&s=2e5fac2c0ac9f9f33756a8b1d25661eece839671 These issues prompted a class-action lawsuit, with investors accusing Aurora of making false and misleading statements about its financial health and growth prospects. Now, Aurora has agreed to an $8.05M settlement to resolve the claims. So, if you bought shares between October 2018 and February 2020, you might be eligible to [file a claim](https://11thestate.com/cases/aurora-cannabis-investor-settlement) and recover some of your losses. Also, Aurora has shifted focus to its international medical cannabis business as part of a transformation plan. The company recently reported a 30% year-over-year increase in global medical cannabis revenue, signaling progress. However, its stock still trades far below its early highs, hovering around $4.10 per share as of December 2024. Anyways, for those who held $ACB shares during the collapse, how much did you lose?