Legal Looming for AMMO, Inc.
Law Offices of Howard G. Smith recently put out a press release indicating the filing of a securities class action on behalf of AMMO, Inc. (“AMMO”) investors who acquired POWW securities between August 19, 2020, and September 24, 2024, marking an inclusive Class Period. If you fall into this category, you have until November 29, 2024, to file a lead plaintiff motion.
Investors weathering losses on their AMMO investments are advised to reach out to the Law Offices of Howard G. Smith to explore their legal rights in this class action.
Quaking in the Financial Terrain
On September 24, 2024, after the markets had shuttered for the day, AMMO let the cat out of the bag regarding its Chief Financial Officer’s resignation – a move dictated by the Board. The company also revealed the initiation of an independent inquiry into its ‘internal control over financial reporting’ between the fiscal years 2020 to 2023.
The Company dropped a bombshell mentioning the employment of a law firm to undertake a thorough investigation into whether the Company and its then management control persons had: inaccurately announced all top brass, the management team, and probable related party dealings from 2020 to 2023; correctly categorized specified payments for investor/public relations and legal services as deductions from earnings via capital raises as opposed to periodic expenses in the fiscal years 2021-2022; and suitably assessed unrestricted stock incentives awarded to officers, board members, staff, and other entities between 2020-2022.
Following this news, the Company’s share price took a nosedive by $0.08, a figure representing 5.26%, to cap at $1.44 per share on September 25, 2024, amid astonishingly high trading activity.
Allegations Unveiled
The complaint lodged in this class action asserts that throughout the Class Period, Defendants issued materially untrue and/or deceptive statements, in addition to neglecting to reveal vital adverse information relative to the Company’s operations, business, and future prospects.
In particular, the Defendants were charged with not informing investors that the company had flawed internal financial controls; they harbored substantial suspicions that the Company hadn’t correctly disclosed all key personnel, management members, and potential related party transactions between 2020 to 2023; a strong chance was evident that the Company hadn’t properly stated various sums paid for investor/public relations and legal services as reductions in capital raise earnings rather than periodic costs in the fiscal years 2021-2022; and the likelihood was high that the Company had undervalued unrestricted stock awards allocated to officers, directors, workers, and others between 2020-2022.
Should you have procured AMMO securities, possess relevant information, seek to delve deeper into these accusations, or have queries concerning this revelation or your stake in such issues, you are encouraged to get in touch with Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith.
