HUMBL, Inc. (HMBL) Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired HUMBL, Inc. (OTC: HMBL) common stock and/or the unregistered HUMBLE TX securities between November 21, 2020 and May 19, 2022. The complaint alleges violations of the Securities Act of 1933 and Securities Exchange Act of 1934. HUMBL is a mobile financial services company that offers: (i) a mobile app that allows peers, consumers, and merchants to connect; (ii) a mobile marketplace that allows consumers and merchants to connect more seamlessly in the digital economy; and (iii) financial products and services, targeted for simplified investing on the blockchain.
According to the complaint, HUMBL began trading publicly on November 12, 2020, after a reverse merger with Tesoro Enterprises, Inc. During the class period, defendants made false and misleading statements. Specifically, they failed to disclose that the HUMBL Pay App did not have the basic functionality promised to investors and that several of the Company’s hyped international business partnerships had a very low chance of contributing material revenues to the Company’s bottom line. Defendants also sold a series of highly speculative unregistered securities called BLOCK Exchange Traded Index (“ETXs”) products. These products purported to “simplify digital asset investing” for customers seeking exposure to cryptocurrency investments. In reality, they were unregistered securities that were collateralized by a variety of highly speculative and risky digital assets.
On April 25, 2022, the price of the Humbl common stock hit a low of $0.11 per share, down from a price high of $6.84 during the class period, which it has not been able to recover. Likewise, the price of BLOCK ETX has dropped over 87% from its height during the Class Period and has not recovered.
Next Steps: If you acquired shares of HUMBL, Inc. (HMBL) common stock and/or the unregistered HUMBLE TX securities between November 21, 2020 and May 19, 2022, you have until July 19, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.