The Lawsuit Unfolds
Glancy Prongay & Murray LLP has recently filed a class-action lawsuit against AMMO, Inc., sending ripples through the financial world. The lawsuit, lodged in the United States District Court for the District of Arizona, has caught the attention of investors who purchased or acquired AMMO, Inc. (“AMMO” or the “Company”) securities during the period spanning from August 19, 2020, to September 24, 2024.
A Sudden Resignation
On September 24, 2024, AMMO made a seismic announcement post-market closure. The resignation of its Chief Financial Officer, allegedly at the board’s behest, marked the beginning of a probing investigation. Notably, the disclosed independent review into its financial control from 2020 to 2023 raised concerns among investors.
Market Response
The impact was evident on the market, with AMMO’s share price plummeting by $0.08 or 5.26%, closing at $1.44 per share on September 25, 2024. The notable decline, coupled with significant trading volume, pointed to the reverberating consequences of the lawsuit.
The Allegations Surface
The crux of the lawsuit accuses the defendants of misleading stakeholders. Allegations span from inadequate financial reporting controls to potential misrepresentation of executive officers and related party transactions. Such claims underscore the egregiousness of the allegations and their potential ramifications on the Company’s credibility.
Legal Implications and Investor Reach
Investors have been implored to take action within 60 days from the notice date if they wish to partake in the legal process. The plaintiff’s claims are deeply rooted in the alleged failure to disclose material facts during the Class Period, hinting at a prolonged legal saga ahead.
