SAN FRANCISCO, Feb. 4, 2022 /PRNewswire/ -- Hagens Berman urges Electric Last Mile Solutions, Inc. (NASDAQ: ELMS) investors and Forum Merger III Corporation (NASDAQ: FIII, FIIIU, FIIIW) investors with significant losses to submit your losses now.
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Electric Last Mile Solutions, Inc. (ELMS) Investigation:
The investigation focuses on financial and other representations used to support the approximate $1.4 billion combined valuation touted by Electric Last Mile, special purpose acquisition company ("SPAC") Forum Merger III Corporation, Electric Last Mile senior management (including co-founder Jason Luo and CEO James Taylor), and others before and after the June 25, 2021 SPAC merger.
On Nov. 25, 2021, Electric Last Mile's board formed a special committee to investigate certain securities transactions by, among others, Luo and Taylor and the related accounting treatment.
On Feb. 1, 2022, Electric Last Mile announced that the special committee determined: (1) previously issued financial statements as of Dec. 31, 2020 and the period from Aug. 20, 2020 (inception) through Dec. 31, 2020 should be restated and no longer relied on; (2) its financial statements as of and for the six months ended June 30, 2021 and the nine months ended Sept. 30, 2021 should no longer be relied on; (3) equity issuances to Luo and Taylor and their accounting treatment are still under evaluation with the assistance of outside legal counsel; and, (4) Luo and Taylor resigned effective immediately.
The special committee also noted Luo and Taylor provided responses to the committee that it believes are inconsistent with documents it and counsel reviewed.
These revelations drove the price of Electric Last Mile Solutions crashing over 50% lower on Feb. 2, 2022, to close at just $2.71 per share.
"We're focused on investors' losses and the extent to which the company, its senior management, and others may have lied about Electric Last Mile's compensation expenses," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Electric Last Mile Solutions and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Electric Last Mile Solutions should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:ELMS@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP
