Under the Legal Lens
Law Offices of Howard G. Smith has put the spotlight on AMMO, Inc. with the recent filing of a securities class action. The lawsuit targets investors who engaged in transactions involving AMMO securities between August 19, 2020, and September 24, 2024, collectively known as the “Class Period”. Interested parties have until November 29, 2024, to file a lead plaintiff motion.
The Domino Effect
The unraveling of events occurred on September 24, 2024, post-market closure. AMMO dropped a bombshell – their Chief Financial Officer resigned “at the request of the Board”. In addition, the Company unveiled an independent investigation into their “internal control over financial reporting” spanning the fiscal years 2020 to 2023. Adding to the narrative, AMMO disclosed engaging a law firm to probe if the Company and its management at the time mishandled various facets like accurately disclosing key executive members, categorizing certain fees related to investor relations and legal services, and the valuation of unrestricted stock awards during the fiscal years 2020 to 2022.
Market’s Reaction
The repercussions were immediate. AMMO’s share price took a dive – a plunge of $0.08 or a 5.26% decrease, settling at $1.44 per share on September 25, 2024. The anomaly was amplified by a surge in trading activity, painting the scene with hues of uncertainty.
The Allegations
The warcry in the lawsuit alleges deliberate actions or inactions by Defendants during the Class Period. The veil they supposedly wore was that of false and misleading statements paired with significant omissions concerning pivotal aspects of AMMO’s business, operations, and future prospects. Delving deeper, the Defendants purportedly failed to disclose glaring issues: inadequate internal controls on financial reporting, suspicious omissions in disclosing executive members, misrepresentation of fees pertaining to investor relations and legal services, undervaluation of unrestricted stock awards, thus rendering their golden promises a mere facade.
Closing Thoughts
For those who’ve engaged in AMMO securities, the unfolding saga presents a tangled path. Seek solace and understanding by reaching out to Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith, based in Bensalem, Pennsylvania. In times of uncertainty, clarity is your ally.