RADNOR, Pa., April 2, 2022 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed against Electric Last Mile Solutions, Inc. (“Electric Last Mile”) (NASDAQ: ELMS) f/k/a Forum Merger III Corp. (NASDAQ: FIII). The action charges Electric Last Mile with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Electric Last Mile’s materially misleading statements to the public, Electric Last Mile investors have suffered significant losses.
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
ELECTRIC LAST MILE’S ALLEGED MISCONDUCT
Electric Last Mile is a commercial electric vehicle solutions company that focuses on designing, engineering, manufacturing, and customizing electric delivery and utility vehicles.
On February 1, 2022, after regular market trading hours, Electric Last Mile revealed that its previously issued financial statements should no longer be relied upon as the company would be restating its previously issued financial statements from August 20, 2020 (inception) through December 31, 2020, including statements in Electric Last Mile’s registration statement. Electric Last Mile also announced the resignations of defendants James Taylor and Jason Luo, the company’s co-founders and CEO and Executive Chairman, respectively. In addressing their resignations, Electric Last Mile revealed that following an investigation by a Special Committee of the Board of Directors into “certain sales of equity securities” made by and to individuals associated with the company, Electric Last Mile determined that in November and December 2020, certain executives purchased equity in the company “at substantial discounts to market value” without any independent valuation.
Following this news, Electric Last Mile’s share price fell $2.88 per share, or 51%, to close at $2.71 per share on February 2, 2022.
WHAT CAN I DO?
Electric Last Mile investors may, no later than April 4, 2022 seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Electric Last Mile investors who have suffered significant losses to contact the firm directly to acquire more information.
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP.