Investors Join Forces to Challenge Alleged Securities Fraud by AMMO, Inc.

Investors Unite to Pursue Justice Against AMMO, Inc.

The Law Offices of Frank R. Cruz has recently announced a significant development for investors in AMMO, Inc. (NASDAQ: POWW) who have experienced considerable financial losses. These investors now have the opportunity to lead a class action lawsuit focused on alleged securities fraud committed by the company.

Understanding the Allegations

The heart of the complaint revolves around claims that AMMO failed to maintain adequate internal controls over its financial reporting processes. During the defined class period, spanning from August 19, 2020, to September 24, 2024, several serious allegations have come to surface:

1. Inaccurate Disclosure: The company reportedly did not properly disclose the identities of its executive officers, management members, and certain related party transactions. This failure to provide clear and accurate information raises serious questions about transparency.

2. Mischaracterization of Fees: Investigations suggest that AMMO might have mischaracterized certain fees associated with investor relations and legal services, treating them as reductions of proceeds from capital raises instead of recognizing them as expenses incurred during fiscal years 2021 and 2022.

3. Valuation Issues: The complaint also points to potential discrepancies in how AMMO valued unrestricted stock awards granted to its executives, board members, employees, and possibly others during fiscal years 2020 through 2022.

4. Deceptive Statements: As a direct consequence of these inadequacies, AMMO's positive statements regarding its business operations, growth prospects, and overall stability are alleged to have been materially misleading, lacking a reasonable basis.

Next Steps for Investors

For shareholders who believe they have suffered losses, this is a crucial moment to act. The deadline to become a lead plaintiff in this class action is November 29, 2024. Investors are encouraged to come forward to discuss their experiences and losses.

If you're interested in joining the lawsuit, you won't need to take immediate action but can choose to retain your own legal counsel or remain an absent member of the class action. Further engagement is available to answer any questions you may have regarding your rights or interests.

For those seeking more information about the class action lawsuit, Frank R. Cruz's office can be reached at their Century City, California location. Investors can inquire via phone or email, providing details such as their mailing address, phone number, and the number of shares purchased.

More information can be found on their official website for those who wish to stay informed. This case emphasizes the importance of investor vigilance and the need for transparent corporate governance.

Conclusion

As this situation develops, it serves as a critical reminder to investors in AMMO, Inc. about the importance of understanding their rights and the potential for legal recourse in the face of alleged corporate malfeasance. With the opportunity to lead a significant class action lawsuit, affected investors have the chance to hold the company accountable and seek justice for their financial losses. Follow updates on Twitter and stay informed as this case unfolds.