Chaos strikes as AMMO, Inc., symbolized by the NASDAQ ticker POWW, finds itself embroiled in a legal quagmire. The Law Offices of Frank R. Cruz have launched a class-action lawsuit against the Company, alleging securities fraud. The lawsuit, filed in the United States District Court for the District of Arizona, covers a period from August 19, 2020, to September 24, 2024.
Investors are on high alert with a 60-day window to stake their claim as lead plaintiff in the legal battle ahead.
The tempest began on September 24, 2024, when AMMO announced the resignation of its Chief Financial Officer at the behest of the Board. Revelations of an internal investigation into financial reporting practices sent shockwaves through the market. The Company disclosed hiring a law firm for an independent probe to scrutinize executive disclosures, financial transactions, and stock valuations across fiscal years 2020 to 2023.
The news hammered AMMO’s share price, plunging $0.08 (5.26%) to $1.44 per share on September 25, 2024. Unprecedented trading volumes marked the day’s carnage on the stock exchange.
The filed complaint paints a grim picture, alleging that during the Class Period, AMMO obscured critical details about its internal controls, executive disclosures, financial characterizations, and stock valuations. Investors were allegedly misled by rosy depictions of the Company’s business, plunging them into financial peril.
To navigate these treacherous waters, investors are advised to keep a close eye on the legal proceedings and consider their options diligently. The legal saga may have far-reaching implications for AMMO and its shareholders alike.
For now, uncertainty looms large over the future trajectory of AMMO, Inc. Will the Company weather this storm, or is it the calm before a financial tempest? Only time will tell.