LMPX CLASS ACTION NOTICE: Law Firm of Frank R. Cruz Files Securities Fraud Lawsuit Against LMP Automotive Holdings, Inc.
LOS ANGELES–(BUSINESS WIRE)–The Law Firms of Frank R. Cruz announces that it has filed a class action lawsuit in the United States District Court for the Southern District of Florida, captioned Nguyen v LMP Automotive Holdings, Inc., et al., Case No. 22-cv-61019, on behalf of the persons and entities that purchased or otherwise acquired LMP Automotive Holdings, Inc. (“LMP” or the “Company”) (NASDAQ: LMPX) titles between June 29, 2021 and May 19, 2022, inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are advised that they have until July 26, 2022 ask the Court to serve as lead plaintiff in this action.
If you are a shareholder who suffered a loss, click here to participate.
On November 16, 2021, after market close, LMP filed a notice of inability to timely file its quarterly report for the third quarter of 2021. It also identified several material weaknesses in its internal control over financial reporting, in particular that “[t]The Company has not maintained a formalized set of accounting policies” and “[t]The company did not maintain effective controls over the review and approval of journal entries, account reconciliations, review of accounts and material information, and adequate documentation of assumptions, estimates and judgments of the direction.
On this news, the Company’s share price fell $0.74, or 5.5%, to close at $12.66 per share on November 17, 2021.
Then, on March 31, 2022, LMP revealed that it could not timely file its annual report for the financial year 2021 “mainly [as] as a result of its ongoing assessment of (i) the correct identification and elimination of intercompany transactions, (ii) estimates of chargeback reserves for financial and insurance products, and (iii) various related financial reporting issues to the activities of the Company, including with respect to the presentation, characterization and amounts of these elements during the preceding fiscal quarters.
On this news, the Company’s share price fell $0.19, or 3.8%, to close at $4.81 per share on April 1, 2022.
Then, on May 17, 2022, after market close, LMP disclosed that it could not timely file its first quarter 2021 quarterly report due to the previously announced ongoing valuation. LMP further disclosed that due to errors in the company’s quarterly reports in fiscal 2021, these reports “will likely need to be restated”. The company also disclosed that these errors could impact “certain previously disclosed material weaknesses in the reporter’s controls over financial reporting.”
On this news, the Company’s stock price fell $0.07 per share, or 1.5%, to close at $4.60 per share on May 18, 2022.
Then, on May 19, 2022, after market close, LMP disclosed that it would restate the financial statements for the quarterly periods of fiscal 2021 “primarily due to the following errors: (i) incorrect identification and elimination intra-group transactions, (ii) incorrect estimates of recharge reserves for financial and insurance products, and (iii) certain financial statement classification errors affecting various financial statement headings of the balance sheet and income statement during the relevant periods. These results reduced total revenue to $15 million for the third quarter of 2021, up to $8 million for the second quarter of 2021, and up to $1 million for the first quarter of 2021. , the company said that “material weaknesses exist in the company’s internal control over financial reporting and that the company’s disclosure controls and procedures were not effective. »
On this news, the Company’s stock price fell $0.20 per share, or 4.4%, to close at $4.26 per share on May 20, 2022.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) that the company engaged in the improper identification and elimination of intercompany transactions; (2) that the Company used incorrect estimates for chargeback reserves for financial and insurance products; (3) that the Company had misclassified certain items in its financial statements, which had an impact on the legends of the financial statements of the balance sheet and the income statement; (4) that there were material weaknesses in LMP’s internal control over financial reporting; (5) that as a result of the foregoing, the Company has overstated its revenues; (6) that as a result of the foregoing, the Company would restate certain of its previously published financial statements and results; and (7) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased LMP securities during the Class Period, you may bring an action before the Court no later than July 26, 2022 ask the Tribunal to appoint you as the principal plaintiff. To be a member of the Group, you do not have to perform any action at the moment; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the Class. If you have purchased LMP securities, have information or want to know more about these claims, or have any questions regarding this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz of the law firm of Lawyers for Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067 at 310-914-5007, by email at [email protected], or visit our website at www.frankcruzlaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.
This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.