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ELMS.US

Electric Last Mile (ELMS) Discounted Purchases $2.7M Settlement

D. New Jersey
Court
2:22-cv-00545
Case number
09 Jun 2021
Class period Start
01 Feb 2022
Class 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.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
03 February 2022
Plaintiffs
Scott T. Hacker
Attorneys
The Rosen Law Firm, P.A.
Defendants
Jason Luo, James Taylor, Albert Li, Marshall Kiev, David Boris
Judge
Claire C. Cecchi
Administrator
Strategic Claims Services
Settlement agreement date
2023-04-13
Class wide damages
$227,500,000
Trades matching type
FIFO
+$2,700,000
Total Settlement Amount
Created by Polina Foster, Scout

Electric Last Mile Solutions Inc

Electric Last Mile Solutions, Inc., a commercial electric vehicle solutions company, focuses on designing, engineering, manufacturing, and customizing electric "last mile' delivery and utility vehi...

    Ticker
    ELMS.US
    ISIN
    US3498851035
    CIK
    1784168
    Sector
    Consumer Discretionary
    Industry
    Automobiles
    Country
    USA
    Address
    1055 West Square Lake Road, Troy, MI, United States, 48098