NEW YORK--(BUSINESS WIRE)--Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Electric Last Mile Solutions, Inc. (“Electric Last” or the “Company”) (OTC: ELMSQ) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Electric Last common stock in the private investment in public equity offering (the “PIPE Offering”) conducted by Electric Last on December 10, 2020. Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/elmsq.
The Complaint alleges that Defendants made false and/or misleading statements and failed to disclose material adverse facts including that: (1) defendants Luo, Taylor, and other senior members of Electric Last’s management had acquired the Company’s common stock at substantial discounts to market value in the November 2020 Equity Transaction and the December 2020 Equity Transaction; (2) the difference between the fair market value of the Company’s common stock sold in the November 2020 Equity Transaction and the December 2020 Equity Transaction and the amount actually paid (i.e., $10 per share) had not been properly recorded as compensation expense by the Company; (3) the failure to record compensation expenses stemming from the November 2020 Equity Transaction and the December 2020 Equity Transaction had the effect of substantially inflating Electric Last’s year-end 2020 financial performance and the pro forma year-end 2020 financial performance of the Company, thereby understating expenses, net loss, and shareholders’ deficit; (4) as a result of the failure to properly treat the November 2020 Equity Transaction and the December 2020 Equity Transaction as compensation, Electric Last’s historical financial statements could no longer be relied upon and would need to be restated; (5) the Company’s historical financial statements provided in the Proxy Statement were not prepared in accordance with GAAP; and (6) BDO, the Company’s independent audit firm, had failed to follow applicable laws, rules, and regulations regarding auditor independence in auditing the Company’s historical financials provided in the Proxy Statement.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: www.bgandg.com/elmsq or you may contact Peretz Bronstein, Esq. or his Law Clerk and Client Relations Manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Electric Last you have until August 14, 2023, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
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