A shareholder class action lawsuit has been filed against Electric Last Mile Solutions, Inc. (“ELMS” or the “Company”) (NASDAQ: ELMS) on behalf of certain investors who purchased shares of the company’s securities between March 31, 2021 and February 1, 2022, inclusive (the “Class Period”).
ELMS purports to be a pure-play commercial electric vehicle company. The current company was formed in July 2021 through a business combination with Forum Merger III Corp. (NASDAQ: FIII), a special purpose acquisition company, with ELMS as the surviving, publicly traded entity.
According to the complaint, on February 2, 2022, the Company issued a press release entitled “Electric Last Mile Solutions Announces Leadership Transition and Financial Update” which disclosed (i) changes to the Company’s leadership and (ii) that certain of the Company’s financial statements needed restatement. Among other things, the press release reported that James Taylor “has resigned from his role as Chief Executive Officer and a member of the Board,” and that Jason Luo “resigned from his position as Executive Chairman of the Board.” The press release further disclosed that these departures “follow an investigation conducted by a Special Committee of the Board of Directors.” Following this news, shares of the Company’s common stock declined $2.88 per share, or over 51% in value, to close at $2.71 per share on February 2, 2022, on heavy trading volume.
Current ELMS stockholders who purchased or acquired FIII or ELMS shares prior to May 20, 2021 are encouraged to contact Kaskela Law LLC (Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, for additional information about this investigation and their legal rights and options.