LMP Automotive Holdings, Inc. (LMPX) Has Material Weaknesses in Internal Control Over Financial Reporting
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired LMP Automotive Holdings, Inc. (NASDAQ: LMPX) securities between June 29, 2021 and May 19, 2022. The complaint alleges violations of the Securities Exchange Act of 1934. LMP, through its subsidiaries, offers customers the ability to buy, sell, rent and subscribe for, and obtain financing for automobiles online and in person.
According to the complaint, during the class period, defendants failed to disclose that there were material weaknesses in LMP’s internal control over financial reporting. Specifically, the Company engaged in the improper identification and elimination of intercompany transactions, used incorrect estimates for chargeback reserves for finance and insurance products, and misclassified certain items in its financial statements, which impacted balance sheet and income statement financial statement captions. As a result of the foregoing, LMP overstated its revenue and would have to restate certain of its previously issued financial statements and results.
Next Steps: If you acquired shares of LMP Automotive Holdings, Inc. (LMPX) securities between June 29, 2021 and May 19, 2022, you have until July 26, 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.