A Battle in the Financial Trenches

Investors with stakes in AMMO, Inc. – known in ticker speak as POWW – have a looming deadline to mark on their calendars. The November 29, 2024 cut-off is fast approaching for filing lead plaintiff motions in a class action lawsuit against the ammunition manufacturer. This legal skirmish concerns securities bought between August 19, 2020 and September 24, 2024, encapsulating what’s dubbed as the “Class Period.”

Trails of Trouble

The scene took a shaky turn on September 24, 2024, after the market closed. AMMO let out a bombshell that its Chief Financial Officer had walked out “at the board’s command.” Simultaneously, spotlighting flaws in its financial framework, the company professed an autonomous probe into “internal control over financial reporting for the fiscal years 2020 through 2023.” Moreover, the company unveiled it had enlisted a law entity to independently scrutinize whether it and its management kings at the time: (i) spilled all the beans on executive officers, management club members, and potential ties in fiscal years 2020 through 2023; (ii) fudged the truth on specific fees doled out for investor relations and legal services as trims of proceeds from capital raisings instead of temporal outlays in fiscal years 2021 and 2022; and (iii) put the right price tag on unrestricted stock awards to VIPs, directors, laborers, and all sundry in fiscal years 2020 through 2022.

Bearing the Brunt

In the aftermath, the company’s stock plummeted by $0.08 or 5.26%, locking at $1.44 per share on September 25, 2024, under the thunderous cloud of heavy trading.

The Allegations Unwound

The lawsuit at hand alleges that during the Class Period, the accused parties dished out significantly tall tales or chose to zip their lips on pivotal adverse revelations about the company’s modus operandi. They allegedly concealed: (1) flimsy controls over financial reporting; (2) the high chance the company bungled the full disclosure of executive officers, management beings, and probable familial liaisons in fiscal years 2020 through 2023; (3) the high chance the company flubbed in categorizing certain investor relations and legal services fees as funding chop-offs instead of mere proximate outlays in fiscal years 2021 and 2022; (4) the high chance the company missed the mark in valuing no-holds-barred stock acknowledgments to bigwigs, board barons, staff, and others in fiscal years 2020 through 2022; and (5) that these transgressions rendered the defendants’ bright narratives about the company’s operation, potential, and grounds seriously flawed or free of any solid foundation.

Wrangling the Wreckage

If you boarded the AMMO express during the Class Period, dig up your legal armor and position yourself before the Court no later than the fateful November 29, 2024 to vie for the coveted lead plaintiff spot. As an aspiring class member, a waiting game is an option – no moves are mandated yet. To snag more intel on this legal clash or to swim into lawyerly waters, reach out to Howard G. Smith of the Law Offices of Howard G. Smith in Bensalem, Pennsylvania.