LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming April 4, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. (“ELMS” or the “Company”) (NASDAQ: ELMS) securities between March 31, 2021 and February 1, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
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, the Company's stock price fell $2.88, or 51%, to close at $2.71 per share on February 2, 2022.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) ELMS’s previously issued financial statements were false and unreliable; (2) ELMS’s earlier reported financial statements would need restatement; (3) certain ELMS executives and/or directors purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation; (4) 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 (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.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired ELMS securities during the Class Period, you may move the Court no later than April 4, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, 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.