We are investigating whether Electric Last Mile Solutions, Inc. (NYSE: ELMS) (“ELMS”) and certain of its top executives have violated federal securities laws.
If you acquired ELMS securities between March 31, 2021 and February 1, 2022, and suffered losses, and have questions about your legal rights, please contact us using the form below to discuss your options at no charge.
Why is there an investigation?
On February 3, 2022, a class action lawsuit was filed against ELMS and several of its top executives in the District of New Jersey (No. 22-cv-00545) on behalf of purchasers of ELMS securities between March 31, 2021 and February 1, 2022, inclusive, alleging that ELMS and its executives violated the Securities Exchange Act of 1934.
ELMS shareholders have until April 4, 2022 to apply to serve as lead plaintiff in the lawsuit.
The lawsuit alleges that defendants 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 time.
Since the disclosure of the restatement, ELMS stock has dropped from a close of $5.59 on February 1, 2022, to a close of $2.28 on February 4, 2022.