The Ticking Clock
Investors must take note of the November 29, 2024 deadline to file a lead plaintiff motion in the ongoing class action lawsuit against AMMO, Inc. (“AMMO” or the “Company”) POWW securities between August 19, 2020 and September 24, 2024.
The law firm reminds investors suffering losses on their AMMO investments to engage with them to explore their legal rights as part of this class action.
The Unveiling
After markets closed on September 24, 2024, AMMO announced its Chief Financial Officer’s resignation “at the request of the Board”. It disclosed an independent investigation into its financial reporting controls from 2020 to 2023. The Company hired a law firm to probe if all disclosures of executives and related party transactions from 2020 to 2023 were accurate. Financial discrepancies include the characterization of certain fees in 2021 and 2022, and the valuation of stock awards from 2020 to 2022.
Consequently, AMMO’s share price plummeted by $0.08 or 5.26% to close at $1.44 per share on September 25, 2024, amidst extraordinary trading activity.
The Alarming Deception
Allegations in the class action complaint suggest that during the Class Period, Defendants issued deceptive statements and failed to disclose crucial information about AMMO’s business. Key omissions include the absence of proper internal controls in financial reporting and inaccurate disclosures of executives and related party transactions. Further faults include the mischaracterization of fees and improper valuation of stock awards.
These glaring discrepancies rendered the Defendants’ optimistic portrayals of AMMO’s operations misleading and unsubstantiated.
The Legal Dance
If you acquired AMMO securities in the Class Period, you have until November 29, 2024 to petition the Court for a lead plaintiff position, subject to certain legal prerequisites. Members of the class action need not act currently; they can choose their legal representation or stay passive but included in the class. For further details or queries regarding the class action, contact the Law Offices of Howard G. Smith.
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