Robbins LLP is Investigating Allegations that AMMO Incorporated (POWW) Failed to Disclose Inadequate Controls Over Financial Reporting

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities who purchased or otherwise acquired AMMO Incorporated (NASDAQ: POWW) securities between August 19, 2020 and September 24, 2024. AMMO designs, produces, and markets ammunition and ammunition component products for public consumers, manufacturers, and law enforcement and military agencies.    

The Allegations

According to the complaint, during the class period, defendants failed to disclose: (1) that the Company lacked adequate internal controls over financial reporting; (2) that there was a substantial likelihood the Company failed to accurately disclose all executive officers, members of management, and potential related party transactions in fiscal years 2020 through 2023; (3) that there was a substantial likelihood the Company failed to properly characterize certain fees paid for investor relations and legal services as reductions of proceeds from capital raises rather than period expenses in fiscal years 2021 and 2022; (4) there was a substantial likelihood the Company failed to appropriately value unrestricted stock awards to officers, directors, employees, and others in fiscal years 2020 through 2022; and (5) 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.

What Now: You may be eligible to participate in the class action against AMMO Incorporated. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by November 29, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.