Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $200,000 In ELMS To Contact Him Directly to Discuss Their Options
NEW YORK - (NewMediaWire) - February 3, 2022 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. (“ELMS” or the “Company”) (NASDAQ: ELMS, ELMSW, FIII, FIIIU, FIIIW) and reminds investors of the April 4, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $200,000 investing in ELMS stock or options between March 31, 2021 and February 1, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330(Ext. 1310). You may also click here for additional information: www.faruqilaw.com/ELMS.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) ELMS’s previously issued financial statements were false and unreliable; (2) ELMS’s earlier reported financial statements would need restatement; (3) certain EMLS 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
On February 1, 2022, Electric Last Mile Solutions announced that certain executives had resigned, stating, "James Taylor, has resigned from his role as Chief Executive Officer and a member of the Board. In addition, Brian Krzanich has been appointed Non-Executive Chairman of the Board, replacing Jason Luo, who has also resigned from his position as Executive Chairman of the Board. The departures follow an investigation conducted by a Special Committee of the Board of Directors (the 'Special Committee')."
Additionally, the Company acknowledged, "on the basis of the Special Committee investigation, the Board concluded that the Company's previously issued consolidated financial statements should be restated and, therefore, should no longer be relied upon. The financial statements in question cover the period as of December 31, 2020, the period from August 20, 2020 (inception) through December 31, 2020, the six months ended June 30, and the nine months ended September 30, 2021. In connection with this conclusion, the Company, together with its advisors, is evaluating the accounting and treatment of certain equity issuances to executive officers. Although the Company cannot, at this time, estimate when it will file its restated financial statements for such periods, it is diligently pursuing completion of the restatement, including with respect to an evaluation of the Company's financial statement reserves for tax payments and contingencies."
On this news, ELMS stock fell sharply during intraday trading on February 2, 2022, the next trading day, on unusually heavy trading volume, damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding ELMS’s conduct to contact the firm, including whistleblowers, former employees, shareholders, and others.
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