Pomerantz Law Firm Files Class Action Against AMMO, Inc. for Alleged Securities Fraud

Class Action Lawsuit Filed Against AMMO, Inc.

On November 25, 2024, prominent law firm Pomerantz LLP announced the initiation of a class action lawsuit against AMMO, Inc. (NASDAQ: POWW), following serious allegations regarding potential securities fraud and unlawful business practices. This lawsuit is aimed at securing justice for shareholders who may have suffered losses during the class period.

Background of the Case

The legal action comes in light of significant developments within AMMO, Inc., a company primarily involved in the ammunition industry. On September 24, 2024, AMMO disclosed that its Chief Financial Officer had resigned at the request of the company’s Board of Directors. Furthermore, the company revealed that it is conducting an independent investigation related to its internal financial controls covering fiscal years 2020 through 2023. As a part of this inquiry, AMMO retained legal counsel to determine if there had been any inaccuracies in the disclosures pertaining to executive officers and related party transactions during the stated fiscal years.

Additionally, AMMO is examining if certain fees associated with investor relations and legal services were appropriately classified between reductions of capital raise proceeds and operational expenses for fiscal years 2021 and 2022. The inquiry also includes a review of how stock awards to various executives were valued in prior years. These revelations prompted a significant decline in AMMO's stock price, which fell by approximately 5.26% on the first trading day following the announcement.

Details for Plaintiffs

Investors who purchased or otherwise acquired AMMO securities during the designated class period are encouraged to take action. According to the Pomerantz firm, potential plaintiffs have until November 29, 2024, to request the Court to appoint them as Lead Plaintiff in the ongoing proceedings. Interested shareholders should contact Danielle Peyton at Pomerantz LLP via email or phone, providing their contact information and details regarding their shares.

About Pomerantz LLP

Pomerantz LLP is widely recognized as a leader in the field of corporate, securities, and antitrust class action litigation. Founded over 85 years ago by Abraham L. Pomerantz, often celebrated as a pioneer in securities class action law, the firm has successfully recovered billions of dollars for victims of securities fraud and corporate misconduct. With offices in major cities such as New York, Chicago, Los Angeles, London, and Tel Aviv, Pomerantz continues to uphold the legacy of fighting for the rights of investors and protecting their interests.

For more details regarding the class action lawsuit and joining the proceedings, investors can visit Pomerantz LLP’s website for a copy of the complaint and additional instructions.

Conclusion

This class action against AMMO, Inc. serves as a critical reminder of the importance of corporate transparency and accountability. As investors navigate the complexities of the market, staying informed about their rights and any potential legal actions is paramount to safeguarding their investments.