Meta Materials Inc. (MMAT) Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Meta Materials Inc. (NASDAQ: MMAT) between September 20, 2020 and December 14, 2021, for violations of the Securities Exchange Act of 1934. Meta Materials purports to be a developer of high-performance functional materials and nanocomposites.
According to the complaint, before the business combination with Metamaterial Inc., which closed on June 28, 2021, the Company was known as Torchlight Energy Resources, Inc. The Company touted the business combination, as well as Metamaterial’s proprietary advanced technologies, agreements, commercialization, products, and production. However, as would later be revealed, defendants failed to disclose that the Company had materially overstated its business connections and dealings, had misstated its products’ novelty and capabilities, and priced its products too high.
On November 15, 2021, Meta Materials filed with the SEC its quarterly report for the period ended September 30, 2021, announcing that in September 2021, it had received a subpoena from the SEC requesting the Company to produce certain documents and information related to, among other things, the merger involving Torchlight Energy and Metamaterial Inc. On this news, Meta Materials’ shares fell almost 4%, to close at $4.77 per share on November 16, 2021, damaging investors.
Then, on December 14, 2021, market researcher Kerrisdale Capital released a report alleging that, among other things, “Meta has habitually made outlandish and misleading claims about the feasibility, development, and commercial potential of various technologies only to repeatedly move the goalposts or retrospectively alter its claims, often just quietly dropping entire projects they had previously touted as pivotal.” On this news, Meta Materials’ shares fell 5.8%, to close at $2.91 per share on December 14, 2021.
If you purchased shares of Meta Materials Inc. (MMAT) between September 20, 2020 and December 14, 2021, you have until March 4, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.