What Can We Learn From CannTrust? A Lot CannTrust Holdings Inc. (NYSE: CTST ) had a really bad week. The New York Stock Exchange and the Toronto Stock Exchange stopped trading the security on the morning of March 31, 2020 when the company announced that it filed for bankruptcy protection and looks to be throwing in the towel as a public company. CannTrust may no longer try to fix its public disclosure statements by filing additional reports as required under the Canadian and US securities laws. The bankruptcy filing was the end result of a downward spiral that started in July 2019 when regulators found unlicensed grow rooms and that CannTrust provided them with false and misleading information. Within five (5) days, CannTrust’s stock dropped 48% and the company lost over $174 million in market value. Shareholders quickly filed a class-action lawsuit on July 10, 2019 alleging that the company failed to disclose to investors that it was growing cannabis without regulatory approval and that it did not comply with regulatory requirements.