Bright Green Corporation
The law firm of Kirby McInerney LLP is investigating potential claims against Bright Green Corporation (“Bright Green” or the “Company”) (NASDAQ: BGXX). The investigation concerns whether Bright Green and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
Bright Green sells cannabis commercially for research and manufacturing purposes, as well as DEA-registered pharmaceutical companies for the production of medical cannabis products and preparations.
On June 2, 2022, Green Market Report published a report entitled “Bright Green Former CEO Claims Valuation Fraud,” which stated that the Company “involves a burned-down building, a years-long battle with the state of New Mexico, a bankruptcy case, and an angry former CEO who is accusing the company of fraud.” John Stockwell, listed CEO in 2017, filed for bankruptcy in the state of New Mexico in 2017. After a greenhouse fire “devastated Stockwell financially,” the report stated that the “greenhouses were transferred to Lynn Stockwell who then transferred the property to Bright Green.” In addition, the report stated that Bright Green’s former CEO John Fikany is suing the company, alleging “Bright Green was a sham, operated illegally and fraudulently.” He alleges that the Stockwells engaged in acts of fraudulent misrepresentation and attempted to force Fikany to aid and abet them in making fraudulent misrepresentations to investors concerning the valuation and progress of Bright Green Corporation. On this news, the price of Bright Green shares declined by $0.54 per share, or approximately 15%, from $3.60 per share to close at $3.04 on June 3, 2022.