SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. (NASDAQ: ELMS; ELMSW) publicly traded securities between March 31, 2021 and February 1, 2022, inclusive (the “Class Period”) have until April 4, 2022 to seek appointment as lead plaintiff in Hacker v. Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp., No. 22-cv-00545 (D.N.J.). Commenced on February 3, 2022, the Electric Last Mile class action lawsuit charges Electric Last Mile and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Electric Last Mile class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller Rudman & Dowd LLP by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Electric Last Mile class action lawsuit must be filed with the court no later than April 4, 2022.
CASE ALLEGATIONS: Electric Last Mile purports to be a pure-play commercial electric vehicle company. On June 25, 2021, Electric Last Mile, Inc. and Forum Merger III Corp., a special purpose acquisition company (“SPAC”) or blank check company, closed the merger which resulted in Electric Last Mile. Prior to the merger, Electric Last Mile’s securities traded on the NASDAQ under the ticker symbols FIII, FIIIU, and FIIIW.
The Electric Last Mile class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Electric Last Mile’s previously issued financial statements were false and unreliable; (ii) Electric Last Mile’s earlier reported financial statements would need restatement; (iii) certain Electric Last Mile executives and/or directors purchased equity in Electric Last Mile at substantial discounts to market value without obtaining an independent valuation; (iv) on November 25, 2021, Electric Last Mile’s Board formed an independent Special Committee to conduct an inquiry into certain sales of equity securities made by and to individuals associated with Electric Last Mile; and (v) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 1, 2022, Electric Last Mile revealed that “Shauna McIntyre, a member of [Electric Last Mile’s] Board of Directors, has been appointed as Interim Chief Executive Officer and President, succeeding James Taylor, who has resigned from his role as Chief Executive Officer and a member of the Board. In addition, Brian Krzanich has been appointed Non-Executive Chairman of the Board, replacing Jason Luo, who has also resigned from his position as Executive Chairman of the Board. The departures follow an investigation conducted by a Special Committee of the Board of Directors (the ‘Special Committee’).” Electric Last Mile further revealed that “[b]ased on the Special Committee’s investigation, [Electric Last Mile] has concluded that in November and December 2020, shortly before [Electric Last Mile’s] December 10, 2020 announcement of a definitive agreement for a business combination with Forum Merger III Corporation, certain Electric Last Mile Inc. executives purchased equity in [Electric Last Mile] at substantial discounts to market value without obtaining an independent valuation.” Electric Last Mile also disclosed that “on January 26, 2022, on the basis of the Special Committee investigation, the Board concluded that [Electric Last Mile’s] previously issued consolidated financial statements should be restated and, therefore, should no longer be relied upon. The financial statements in question cover the period as of December 31, 2020, the period from August 20, 2020 (inception) through December 31, 2020, the six months ended June 30, and the nine months ended September 30, 2021.” On this news, Electric Last Mile’s share price fell by approximately 51%, damaging investors.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Electric Last Mile securities during the Class Period to seek appointment as lead plaintiff in the Electric Last Mile class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
