LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming January 7, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired TMC the metals company Inc. (“TMC” or the “Company”) (NASDAQ: TMC) securities between May 12, 2023 and March 25, 2024, inclusive (the “Class Period”).
IF YOU ARE AN INVESTOR WHO LOST MONEY ON TMC THE METALS COMPANY INC. (TMC), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.
What Happened?
On March 25, 2024, TMC disclosed that its financial statements for the first three quarters of 2023 should no longer be relied upon and would need to be restated, citing the Company’s partnership with Low Carbon Royalties Inc. (“LCR”) and “whether the offsetting entry to the proceeds it received from LCR should be classified as debt or deferred income.” Further, TMC stated that “[a]s the transaction with LCR was considered an equity investment rather than a sale transaction, the sale of future revenue will be reclassified as Royalty liability” per appropriate accounting standards.
On this news, TMC’s stock price fell $0.205, or 13.2%, to close at $1.345 per share on March 26, 2024, thereby injuring investors.
What Is The Lawsuit About?
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) TMC maintained deficient internal controls over financial reporting; (2) as a result, the Company inaccurately classified the sale of future revenue attributable to the LCR Partnership as deferred income rather than debt; (3) the foregoing misclassification, when it became known, would require TMC to restate one or more of its previously issued financial statements; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired TMC securities between May 12, 2023 and March 25, 2024, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is January 7, 2025.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:
Frank R. Cruz
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Email us at: info@frankcruzlaw.com
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
