Faruqi & Faruqi Investigates AMMO, Inc. for Potential Securities Law Violations
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against AMMO, Inc. The firm is looking into possible violations of federal securities laws by the company and its executives. Investors who suffered losses exceeding $50,000 in AMMO stock between August 19, 2020 and September 24, 2024 are encouraged to reach out to the firm to discuss their legal options.
What is the Allegation?
The investigation centers around allegations that AMMO, Inc. and its executives made misleading statements or failed to disclose crucial information to investors. The complaint alleges that the company:
* Lacked proper internal controls over financial reporting.
* Failed to accurately disclose all executive officers, management members, and related party transactions from 2020 to 2023.
* Improperly characterized certain fees paid for investor relations and legal services, misrepresenting them as proceeds from capital raises instead of period expenses.
* Did not appropriately value unrestricted stock awards to officers, directors, employees, and others from 2020 to 2022.
These alleged actions, according to the complaint, led to materially misleading statements about the company’s business, operations, and prospects.
Key Events Leading to the Investigation
On September 24, 2024, AMMO announced that its Chief Financial Officer resigned at the request of the Board. The company also disclosed that it is conducting an independent investigation into its internal controls over financial reporting for the fiscal years 2020 to 2023. Additionally, the company retained a law firm to investigate whether the company and its management control persons accurately disclosed information related to executive officers, related party transactions, and stock awards.
What Does This Mean for Investors?
If you are an investor who suffered losses exceeding $50,000 in AMMO stock during the specified period, Faruqi & Faruqi encourages you to contact the firm. You can reach out to partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You can also find more information on their website: www.faruqilaw.com/POWW.
The firm emphasizes that investors have the right to understand what happened and to explore potential legal options. They are dedicated to protecting the interests of investors and holding companies accountable for their actions.
