Wrap Technologies, Inc. (WRTC) Misstates Viability of its Sole Product
During the class period, the Company falsely touted the strength of its business and operational prospects. In December 2019, Wrap Technologies announced a 90-day pilot training program with the Los Angeles Police Department (LAPD) using BolaWrap. On July 22, 2020, White Diamond Research published a report alleging that BolaWrap had limited use in field and it was likely that Wrap Technologies did not secure a contract with the LAPD. On September 23, 2020, White Diamond Research published a follow up report titled entitled “Wrap Technologies: Disastrous LAPD BolaWrap Pilot Program Results, No Evidence These Have Been Communicated to Investors.” According to the report, the Company failed to disclose key findings from LAPD’s trial pilot program and extension because it revealed poor results. On this news, Wrap Technologies’ stock dropped 25.43% to close at $6.07 and has yet to recover.