LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Alfi, Inc. (“Alfi” or the “Company”) (NASDAQ: ALF, ALFIW): (a) common stock or warrants pursuant and/or traceable to the Registration Statement issued in connection with the Company’s May 2021 initial public offering (the “IPO” or “Offering”); and/or (b) securities between May 4, 2021 and November 15, 2021, inclusive (the “Class Period”). Alfi investors have until January 31, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On or about May 4, 2021, Alfi conducted its IPO, selling approximately 3.7 million shares of common stock and 3.7 million warrants at $4.15 per both share and warrant.
On October 28, 2021, Alfi revealed that its Board of Directors had placed the Company’s President and Chief Executive Officer, its Chief Financial Officer and Treasurer, and its Chief Technology Officer “on administrative leave [pending] an independent internal investigation regarding certain corporate transactions and other matters.” It also stated that on October 28, 2021, Alfi terminated the CTO’s employment.
On this news, Alfi’s stock price fell $1.18, or 22%, to close at $4.42 per share on October 29, 2021, thereby injuring investors.
On November 1, 2021, Alfi disclosed that the Chair of its Audit Committee resigned. The Company also stated that its internal investigation was into “the Company’s purchase of a condominium for a purchase price of approximately $1.1 million” and the “Company’s commitment to sponsor a sports tournament in the amount of $640,000,” both of which “were undertaken by the Company’s management without sufficient and appropriate consultation with or approval by the Board.”
On November 15, 2021, Alfi stated that it “received a letter from the staff of the [SEC] indicating that the Company, its affiliates and agents may possess documents and data relevant to an ongoing investigation being conducted by the staff of the SEC.”
On November 16, 2021, Alfi stated that it could not timely file its quarterly report on Form 10-Q for the period ended September 30, 2021.
On this news, the Company’s stock price fell $0.24, or 5%, to close at $4.37 per share on November 16, 2021.
The complaint filed alleges that Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Alfi maintained deficient disclosure controls and procedures and internal control over financial reporting; (ii) as a result, the Company and its employees could and did engage in corporate transactions and other matters without sufficient and appropriate consultation with or approval by the Company’s Board of Directors; (iii) all the foregoing increased the risk of internal and regulatory investigations into the Company and its employees; (iv) all the foregoing, once revealed, was likely to have a material negative impact on the Company’s reputation, financial condition, and ability to timely file periodic reports with the SEC; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Alfi securities during the Class Period, you may move the Court no later than January 31, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Alfi 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.