NEW YORK--(BUSINESS WIRE)--
, a leading national securities law firm, is investigating potential claims against AMMO, Inc. (“AMMO” or the “Company”) (NASDAQ: POWW) and reminds investors of the November 29, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See .
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that (1) the company lacked adequate internal controls over financial reporting; (2) that there was a substantial likelihood the Company failed to accurately disclose all executive officers, members of management, and potential related party transactions in fiscal years 2020 through 2023; (3) that there was a substantial likelihood the Company failed to properly characterize certain fees paid for investor relations and legal services as reductions of proceeds from capital raises rather than period expenses in fiscal years 2021 and 2022; (4) there was a substantial likelihood the Company failed to appropriately value unrestricted stock awards to officers, directors, employees and others in fiscal years 2020 through 2022; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On September 24, 2024, after the market closed, AMMO announced that its Chief Financial Officer had resigned “at the request of the Board.” Further, the Company disclosed that it is conducting an independent investigation into its “internal control over financial reporting for the fiscal years 2020 through 2023.” The Company further disclosed that it had retained a law firm to conduct an independent investigation into whether the Company and its management control persons at the time: “(1) accurately disclosed all executive officers, members of management, and potential related party transactions in fiscal years 2020 through 2023; (2) properly characterized certain fees paid for investor relations and legal services as reductions of proceeds from capital raises rather than period expenses in fiscal years 2021 and 2022; and (3) appropriately valued unrestricted stock awards to officers, directors, employees and others in fiscal years 2020 through 2022.”
On this news, the Company’s share price fell $0.08, or 5.26%, to close at $1.44 per share on September 25, 2024, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding AMMO’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the AMMO, Inc. class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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