Securities Fraud Lawsuit Filed Against Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. (NASDAQ: ELMS)
A securities fraud lawsuit has been filed against Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. (NASDAQ: ELMS) for potential securities violations on behalf of shareholders who purchased shares anytime during the period from March 31, 2021 through February 1, 2022. The release of potentially misrepresentative and misleading information, as well as failure to disclose material adverse facts to the public may have resulted in material losses for shareholders. The class action lawsuit has already been filed.
Copy of the Complaint Against ELMS
On February 1, 2022, ELMS announced that the Company would restate its previously issued financial statements from August 20, 2020 (inception) through December 31, 2020, including statements in the Company’s registration statement, and that the Company’s previously issued financial statements should no longer be relied upon. In connection with the restatement, the Company also announced the resignation of its CEO and its Executive Chairman. Following a Special Committee investigation into “certain sales of equity securities” made by and to individuals associated with the Company, ELMS determined that in November and December 2020, certain executives purchased equity in the Company “at substantial discounts to market value.” On this news, on February 2, 2022 the Company’s stock price fell from $5.59 to close at $2.71, representing a 51% drop per share.
What are the allegations?
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose:
- ELMS’s previously issued financial statements were false and unreliable;
- ELMS’s earlier reported financial statements would need restatement;
- certain EMLS executives and/or directors purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation;
- on November 25, 2021 (Thanksgiving), the Company’s Board formed an independent Special Committee to conduct an inquiry into certain sales of equity securities made by and to individuals associated with the Company; and
- as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What should you do?
If you purchased shares of ELMS common stock during the relevant time period, you may be entitled to compensation, without payment of any out-of-pocket litigation fees or costs. You may request the Court to appoint you as lead plaintiff for the class action no later than April 4, 2022. We urge investors to select highly qualified counsel with a proven track record of successful outcomes for its clients. MDF Law PLLC, is a New York City based securities litigation firm whose practice focuses on advocating for investors. We have helped to recover hundreds of millions of dollars for investors. We take all our cases on contingency, which means we do not collect a legal fee unless our clients recover money. Contact MDF Law for a free consultation regarding this matter.