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ELMS.US
id: 762

Electric Last Mile (ELMS) Investor Settlement

D. Delaware
Court
23-CV-00653
Case number
10 Dec 2020
Class period Start
25 Jun 2021
Class period End
14 Aug 2023
Lead Plaintiff motion deadline
Electric Last Mile (ELMS) settles $2.7M with investors to resolve the claims over the financial misrepresentation.

Outline

Back in 2020, many reports highlighted serious flaws in ELMS's financial statements and auditing practices, which didn’t follow proper accounting rules (GAAP). Following this news, $ELMS significantly fell, and the company faced a lawsuit from investors.

Timeline
  • On February 1, 2022: ELMS disclosed an internal probe found executives secretly bought shares at big discounts in 2020.
  • On February 2, 2022: Following this disclosure, $ELMS fell by 51%.
  • On March 11, 2022: ELMS confirmed an ongoing SEC investigation.
  • On June 13, 2022: ELMS has filed for bankruptcy.
  • On June 14, 2023: Investors filed a lawsuit against ELMS by investors alleging securities fraud and misrepresentation.
Background

Despite strong financial performance in June 2021, an internal investigation revealed ELMS failed to record share acquisitions by senior management as compensation, changing its financial results.

These discounted acquisitions in late 2020 should have been recorded as expenses but weren't, causing understated expenses and net losses.

On February 2, 2022, after these issues were disclosed, $ELMS fell by 51%. The investigation also led to the ouster of both co-founders, Jason Luo and James Taylor, from their positions as Executive Chairman and CEO.

Further investigation by the SEC found major problems in ELMS’s financial reporting and auditing.

On June 13, 2022, ELMS announced a bankruptcy filing.

Following that, in 2022, ELMS was sued by investors who claimed the company misled them about its financial state of the company and reporting practices.

What can investors expect now?

Electric Last Mile settles $2.7M with investors to resolve the claims over the financial misrepresentation.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
25 June 2021
Filing date
14 June 2023
Lead Plaintiff Deadline
14 August 2023
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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