Green Thumb (OTCMKTS:GTBIF) stock is taking a beating on Tuesday following news of a federal investigation into the marijuana company.
According to the reports, which came out after-hours Monday, Green Thumb is facing an investigation over pay-to-play allegations. This has to do with campaign donations and other actions taken by the company. That covers its business in Illinois and several other states.
A Green Thumb spokesperson said that they are unaware of any such allegations. It’s also worth noting that there haven’t been any charges filed against the company in connection to the investigation, reports The Chicago Tribune.
Investors will also want to know that reports of the investigation don’t pin down a specific time for it. To go along with that, the origin of the probe is also unclear. Even so, that isn’t stopping shares of GTBIF stock from being rattled by today’s news.
As a result, shares of GTBIF stock are seeing abnormally high trading today. That’s resulted in some 3 million shares of the stock changing hands as of this writing. To put that in perspective, the company’s stock typically moves closer to 819,000 shares per day.
Following up on that news, Block & Leviton LLP announced plans to investigate the company. Block & Leviton LLP is a national securities litigation firm. It’s seeking to determine if the company broke any federal laws. Specifically, it is looking into the possibility of the company and its executives committing securities fraud.
Green Thumb is a marijuana company that has been operating in the field for several years now. It was one of the first to get approval for legally growing weed in Illinois. That also paved the way for it to be a recreational marijuana company when the state changed its laws in 2019.
GTBIF stock was down 13.3% as of Tuesday afternoon, which has basically erased any gains it made since the start of the year.
While GTBIF may be down today, there are plenty of other pot stocks for investors to consider. Some of those include Tilray (NASDAQ:TLRY), Scotts Miracle-Gro (NYSE:SMG), Constellation Brands (NYSE:STZ), and others. Investors can get up to date on the latest marijuana news below.
More Marijuana Stocks News
- Tilray Has a Promising Future, But Valuation Now Is Too High
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.