NEW YORK, May 31, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against LMP Automotive Holdings, Inc. (“LMP” or the “Company”) (NASDAQ: LMPX) in the United States District Court for the Southern District of Florida on behalf of investors who purchased LMP stock between June 29, 2021 and May 19, 2022, inclusive (the “Class Period”).
The Complaint alleges that Defendants failed to disclose to investors: (i) that the Company engaged in the improper identification and elimination of intercompany transactions; (ii) that the Company used incorrect estimates for chargeback reserves for finance and insurance products; (iii) that the Company had misclassified certain items in its financial statements which impacted balance sheet and income statement financial statement captions; (iv) that there were material weaknesses in LMP’s internal control over financial reporting; (v) that, as a result of the foregoing, the Company overstated its revenue; (vi) that, as a result of the foregoing, the Company would restate certain of its previously issued financial statements and results; and (vii) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
As news of these various issues were disclosed by the Company, the stock price of the Company repeatedly fell and investors suffered losses.
Investors who purchased or otherwise acquired shares of LMP should contact the Firm prior to the July 26, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
