No, they don't go to jail. Because everything they say is just...

No, they don't go to jail. Because everything they say is just about their process of developing a product before trials. They can just say that the trials later identify defects in their research an development. The former CEO would have been already out of the company for over a year by that time. I have never seen people with worse communications than AusCann's going to jail for the last 15 years playing with stocks in Australia! It's a different thing if they actually produced and sold a product that was not what they claimed to do. This is like saying "We think we have developed a philosopher stone that turns lead into gold in our experiments. We will be able to test this product by end of 2019 in a public trial." If it does not work, they can say "Ah, well. There was a flaw in our experiment. We will try again." There is nothing illegal about this. Investors can file a class action in a civil court but that would just drive the company to bankruptcy without any gain to any party.