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Labaton Sucharow LLP Announces Expanded Securities Class Action Lawsuit Filed Against Electric Last Mile Solutions, Inc. f/k/a Forum Merger III Corp. – ELMS, ELMSW, FIII, FIIIU, FIIIWApr 4th, 2022 15:53 EST
NEW YORK–(BUSINESS WIRE)–Labaton Sucharow LLP (“Labaton Sucharow”) announces that on April 4, 2022, it filed a securities class action lawsuit on behalf of its client Pierre Fontaine against Electric Last Mile Solutions, Inc. and its predecessor company Forum Merger III Corp. (“ELMS,” “FIIU,” or the “Company”) (NASDAQ: ELMS, ELMSW, FIII, FIIIU, FIIIW), and certain of its executives (collectively, “Defendants”). The action, captioned Fontaine v. Electric Last Mile Solutions, Inc., No. 22-cv-1902 (D.N.J.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities that purchased or otherwise acquired ELMS and/or FIIU securities between November 12, 2020 and February 1, 2022, inclusive (the “Class Period”).
The Complaint expands the class period asserted in the action against ELMS captioned Hacker v. Electric Last Mile Solutions, Inc. et al., No. 2:22-cv-00545 (D.N.J.) (“Hacker Action”). Pursuant to the notice published on February 3, 2022 in connection with the filing of the Hacker Action, as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as Lead Plaintiff in the securities actions pending against ELMS are required to file a motion for appointment as Lead Plaintiff, no later than 60 days from the February 3, 2022 notice (or no later than April 4, 2022).
According to the lawsuit, Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) ELMS’s previously issued financial statements were false and unreliable; (2) ELMS’s earlier reported financial statements would need restatement; (3) certain ELMS executives and/or directors purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation; (4) on November 25, 2021 (Thanksgiving), the Company’s Board formed an independent Special Committee to conduct an inquiry into certain sales of equity securities made by and to individuals associated with the Company; and (5) 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased or acquired ELMS and/or FIIU securities during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the District of New Jersey no later than April 4, 2022. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (212) 907-0650, or via email at [email protected].
Fontaine is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $2 trillion. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at www.labaton.com.
You can view a copy of the complaint here.