The Class: Shareholder rights law firm Robbins LLP informs investors that a shareholder filed a class action on behalf of purchasers of Electric Last Mile Solutions, Inc. (NASDAQ: ELMS, ELMSW) f/k/a Forum Merger III Corp. (NASDAQ: FII, FIIIU, FIIW) securities between March 31, 2021 and February 1, 2022, for violations of the Securities Exchange Act of 1934. ELMS is a commercial electric vehicle solutions company that designs, engineers, manufactures, and customizes electric delivery and utility vehicles.
If you suffered a loss due to Electric Last Mile Solutions, Inc.'s misconduct, click here.
What is this Case About: Insiders of Electric Last Mile Solutions, Inc. (ELMS) Bought ELMS Stock at a Substantial Discount and the Company's Financial Statements Cannot be Relied On
According to the complaint, Forum Merger III Corp., a Special Purpose Acquisition Company, and Electric Last Mile, Inc. completed their merger on June 25, 2021, with Electric Last Mile Solutions being the surviving publicly traded company.
On February 1, 2022, ELMS issued a press release announcing that its CEO and co-founder, and Chairman and co-founder, resigned from their positions. These departures followed an investigation conducted by a Special Committee of the Board of Directors, which had been formed in November 2021, following "an inquiry into certain sales of securities made by and to individuals associated with the company." These sales were purportedly at substantial discounts to market value without obtaining an independent valuation. The press release also stated that "the Board concluded that the Company's previously issued consolidated financial statements should be restated, and therefore, should not be relied upon." On this news, ELMS' shares declined over 50%.
Next Steps: If you purchased shares of Electric Last Mile Solutions, Inc. (ELMS, ELMSW) between March 31, 2021 and February 1, 2022, you have until April 4, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Electric Last Mile Solutions, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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