Investor Alert: Deadline Approaching for Class Action Lawsuit
Investors who have been closely following the saga of AMMO, Inc. (“AMMO”), listed under the ticker symbol POWW on NASDAQ, should mark their calendars for the impending November 29, 2024 deadline. This deadline signifies the last chance for aggrieved investors to assert their rights and potentially become the lead plaintiff in a class action lawsuit. The lawsuit revolves around the period between August 19, 2020, and September 24, 2024, inclusively, called the “Class Period.”
On September 24, 2024, AMMO made waves in the market by announcing the abrupt resignation of its Chief Financial Officer, amid insistent Board requests. Coupled with this bombshell was the revelation of an independent probe initiated by the Company into its financial controls spanning from 2020 to 2023. AMMO added another layer of scrutiny by disclosing its engagement of a law firm to delve into potential misrepresentations concerning executive officers, management members, and related party transactions. The probe extended to the accurate accounting of certain fees attributing to investor relations and legal services during 2021 and 2022. Furthermore, AMMO was under the microscope for its valuation of unrestricted stock awards to various stakeholders throughout 2020 to 2022.
Unsurprisingly, the fallout was immediate. AMMO’s stock took a nosedive, plummeting by $0.08 per share, equivalent to a 5.26% decrease, to close at $1.44 per share on September 25, 2024. The noteworthy aspect was the unusual surge in trading volume that accompanied this downward spiral.
The class-action complaint leveled against AMMO contends that the Company and its executives propagated materially false and misleading statements while concealing critical information about the Company’s operational integrity and future prospects. Allegations include the lack of robust internal financial controls, the potential failure to accurately disclose pivotal information regarding executives and transactions, the potentially incorrect characterization of fees earmarked for specific services, and the questionable valuation of stock awards.
For investors directly impacted by these tumultuous events, the deadline for taking action looms large—November 29, 2024 is the cutoff date to move the Court and seek the lead plaintiff status. However, silence is also an option; remaining inactive will not jeopardize your standing as a class member. Should you have any queries regarding the lawsuit or wish to delve deeper into the legal landscape, feel free to reach out to Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith situated at 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020. Contact can be established via phone at (215) 638-4847 or toll-free at (888) 638-4847, alternatively through email at howardsmith@howardsmithlaw.com.
This unveiling of corporate malfeasance serves as a stark reminder of the importance of nuanced due diligence for investors navigating the treacherous waters of the financial markets.
