Faruqi & Faruqi Investigates AMMO, Inc. for Potential Securities Fraud
Investors who suffered losses exceeding $50,000 in AMMO, Inc. (POWW) between August 19, 2020, and September 24, 2024, are encouraged to contact Faruqi & Faruqi, LLP. The leading national securities law firm is investigating potential claims against AMMO, Inc. for alleged violations of federal securities laws.
The investigation centers around allegations that AMMO and its executives made false and/or misleading statements and failed to disclose crucial information, potentially misleading investors. These alleged omissions and misrepresentations include:
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Lack of Adequate Internal Controls:
The company may have lacked adequate internal controls over financial reporting, raising concerns about the reliability of its financial statements.*
Transparency Issues:
AMMO may have failed to accurately disclose all executive officers, members of management, and potential related party transactions in fiscal years 2020 through 2023.*
Mischaracterized Fees:
The company may have improperly characterized certain fees paid for investor relations and legal services, potentially misleading investors about its financial performance.*
Valuation of Stock Awards:
AMMO may have failed to appropriately value unrestricted stock awards to officers, directors, employees, and others during fiscal years 2020 through 2022.The Catalyst: A Resignation and an Investigation
On September 24, 2024, AMMO announced the resignation of its Chief Financial Officer, citing a request from the Board. Additionally, the company disclosed that it is conducting an independent investigation into its internal control over financial reporting for fiscal years 2020 through 2023. The company also retained a law firm to investigate potential violations related to the disclosure of executive officers, related party transactions, and the valuation of stock awards.
Following this news, AMMO’s share price dropped by 5.26% on September 25, 2024, on unusually heavy trading volume.
Investors’ Rights
Faruqi & Faruqi is reminding investors of the November 29, 2024, deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against AMMO. The lead plaintiff is the investor with the largest financial interest in the case and will represent the interests of the class.
Contact Information
Investors who have lost money in AMMO, Inc. are encouraged to contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) or by clicking here for additional information. You can also follow them on LinkedIn, X (formerly Twitter), or Facebook for updates.
