A shareholder class action lawsuit has been filed against Aterian, Inc. (NASDAQ: ATER) (formerly known as Mohawk Group Holdings, Inc.) on behalf of investors who purchased shares of the Company’s stock between December 1, 2020 and May 3, 2021, inclusive (the “Class Period”).
According to the complaint, on May 4, 2021, Culper Research issued a scathing report concerning Aterian. In its report, Culper wrote that “the Company has ties to convicted criminals and is promoting what we believe is an overhyped ‘AI’ narrative and a string of garbage acquisitions to mask the failure of its already ill-conceived core business.” Culper continued that “Aterian has been largely unsuccessful in convincing other Amazon sellers to pay for its ‘AIMEE’ AI platform, and at least 5 former employees and a former customer have expressed doubts regarding AIMEE’s legitimacy. We think that Aterian’s underlying business has failed, forcing the Company to obscure its poor performance with a series of questionable acquisitions.” Culper further wrote: “[w]e believe that there are serious problems with Aterian’s claims to maintain strong organic growth and to drive M&A synergies: to us, neither of these appears to be the case. . . . In our view, this suggests not only that Aterian is unable to grow EBITDA at acquired businesses, but that its core business is also failing to produce.”
Following this news, shares of Aterian’s common stock fell $3.04 per share, or nearly 15% in value, to close on May 4, 2021 at $17.62 per share, on heavy trading volume.
IMPORTANT DEADLINE: Investors who purchased Aterian’s securities during the Class Period may, no later than July 12, 2021, seek to be appointed as a lead plaintiff representative in the action.
Aterian investors who suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about the opportunity to actively participate in the action as a lead plaintiff representative.