The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. (“ELMS” or the “Company”) (NASDAQ: ELMS, ELMSW) securities from March 31, 2021 to February 1, 2022 inclusive (the “Class Period”). Investors have until April 4, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
ELMS is a commercial electric vehicle company that merged with Forum Merger III Corp., a special purpose acquisition company (“SPAC”) or blank check company, in June 2021.
On February 1, 2022, ELMS announced that it would restate its previously issued financial statements from August 20, 2020 (inception) through December 31, 2020, and that the Company’s previously issued financial statements should no longer be relied upon. In connection with the restatement, the Company also announced the resignation of its CEO and its Executive Chairman. Following a Special Committee investigation into “certain sales of equity securities” made by and to individuals associated with the Company, ELMS determined that in November and December 2020, certain executives purchased equity in the Company “at substantial discounts to market value.” On this news, the Company’s stock price declined by $2.88 per share, or approximately 51.5%, from $5.59 per share to close at $2.71 per share on February 2, 2022.
The lawsuit alleges throughout the Class Period, ELMS’s financial statements were materially inaccurate. Moreover, ELMS did not disclose that certain ELMS executives and/or directors purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation. As a result of the foregoing, ELMS stock traded at artificially inflated prices throughout the Class Period.
If you purchased or otherwise acquired ELMS securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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