Robbins Arroyo LLP: Alliance MMA, Inc. (AMMA) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Alliance MMA, Inc. (NasdaqCM: AMMA) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Alliance securities pursuant to the company’s initial public offering on October 6, 2016 (the “IPO”), for alleged violations of the Securities Act of 1933 by Alliance’s officers and directors. Alliance focuses on mixed martial arts (MMA) promotional activities.
Alliance Accused of Failing to Implement Adequate Internal Controls
According to the complaint, on October 6, 2016, Alliance held its IPO, selling approximately 3.3 million shares at $4.50 per share and raising approximately $14.99 million in net proceeds. The complaint alleges that Alliance’s registration statement that was filed in connection with its IPO failed to disclose that the condensed consolidated financial statements for the three months ended June 30, 2016, and for the six months ended June 30, 2016, could not be relied upon due to an error in recognizing as compensation transfers of common stock by an affiliate of the company to individuals who were at the time of transfer, or subsequently became, officers, directors or consultants of the company.
On April 12, 2017, Alliance filed a Form 8-K with the U.S. Securities and Exchange Commission revealing that certain of its financial statements should no longer be relied upon. The company further noted that it plans to include revised financial information in its Form 10-K for the year ended December 31, 2016, and that the company’s chief financial officer has “discussed the determination to restate these financial statements with its independent accounting firm.” Since its IPO, shares of Alliance have plummeted over 50%, closing at $2.24 per share on April 13, 2017.
Alliance Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.
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