BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Aterian, Inc. f/k/a Mohawk Group Holdings, Inc. (“Aterian” or the “Company”) (NASDAQ: ATER, MWK) securities between December 1, 2020 and May 3, 2021, inclusive (the “Class Period”). Aterian investors have until July 12, 2021 to file a lead plaintiff motion.
Investors suffering losses on their Aterian investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On May 4, 2021, Culper Research published a report titled “Aterian (ATER): Bought from Felons & Fraudsters, Sold to You,” alleging that Aterian has “ties to convicted criminals” and is “promoting what we believe is an overhyped ‘AI’ narrative and a string of garbage acquisitions to mask the failure of its already ill-conceived core business.” Culper also alleges that “[o]ver 25% of Aterian shares now belong to two felons and two alleged scam artists, all of whom will be free to dump their stock by August.” The report alleged that the Company “has been largely unsuccessful in convincing other Amazon sellers to pay for its ‘AIMEE’ AI platform, and at least 5 former employees and a former customer have expressed doubts regarding AIMEE’s legitimacy.”
On this news, Aterian’s stock price fell $4.94 per share, or 24%, over two trading sessions to close at $15.72 per share on May 5, 2021, thereby injuring investors.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s organic growth is plummeting; (2) the Company’s recent, self-lauded acquisitions were overpayments for flawed assets from questionable sources; (3) Aterian’s purported artificial intelligence software is a flawed product that lacks customer interest; (4) Aterian uses rebate programs and paid or artificial reviews to pump up their product offerings; and (5) 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.
If you purchased Aterian securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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