id: 901, Created by Polina Foster, Scout
Electric Last Mile (ELMS) Discounted Purchases $2.7M Settlement
How it works?
- Company agreed to settle with investors to avoid further litigation
- We prepare documents and claim payout for you
D. New JerseyCourt
09 Jun 2021Class period Start
01 Feb 2022Class period End
- Electric Last Mile supposedly misled about unreliable financials and undisclosed discounted equity purchases by executives.
- The news about executives' discounted equity purchases led to 51% $ELMS drop.
- Electric Last Mile agreed to pay $2.7M to investors to resolve the claims due to this case.
The Electric Last Mile was accused of not revealing equity purchases by executives at significant discounts without proper valuation.
Following a Special Committee investigation in November 2021, leadership changes were announced on February 1, 2022, revealing that the CEO and Executive Chairman resigned.
The investigation led to the conclusion that certain executives had purchased company equity at substantial discounts, causing $ELMS 51% drop.
Electric Last Mile has now decided to end all the allegations and pay a $2.7M settlement.
03 February 2022
Scott T. Hacker
The Rosen Law Firm, P.A.
Jason Luo, James Taylor, Albert Li, Marshall Kiev, David Boris
Claire C. Cecchi
Strategic Claims Services
Settlement agreement date
Class wide damages
Trades matching type
+$2,700,000Total Settlement Amount