#United States #New York #WM Technology #Securities Law #Faruqi & Faruqi

Investigation of WM Technology by Faruqi & Faruqi

On November 30, 2024, Faruqi & Faruqi, LLP announced its investigation into claims on behalf of investors of WM Technology, Inc. (NASDAQ: MAPS). This inquiry comes in light of allegations that the company engaged in misleading practices that inflated its reported user metrics.

Background on WM Technology

WM Technology operates an online marketplace focused on the cannabis industry. However, concerns have arisen about the accuracy of its reported monthly active users (MAUs), which the company had claimed were essential indicators of its business health. Allegations suggest that these figures were inflated over the years, misleading investors about the company's performance and potential.

The SEC's Involvement

The U.S. Securities and Exchange Commission (SEC) has taken action against WM Technology, charging the company along with its former CEO, Christopher Beals, and former CFO, Arden Lee. The SEC's litigation release identified negligent misrepresentations in the company's public reports regarding its key operating metric, MAUs, which are critical for potential investors and stakeholders.

Just a day after the SEC's announcement on September 25, 2024, WM Technology's stock price dropped by 1.9%, reflecting market reaction to the negative news. This highlights the significant impact that allegations of misconduct can have on investor confidence and stock value.

Legal Options for Affected Investors

Faruqi & Faruqi, LLP is urging those investors who experienced losses exceeding $75,000 between May 25, 2021, and September 24, 2024, to reach out for legal guidance. The firm emphasizes the approaching deadline of December 16, 2024, for potential lead plaintiffs wishing to join a federal securities class action lawsuit against WM Technology. Participants in the class action will have the opportunity to recover losses, with their eligibility remaining intact whether they choose to act as lead plaintiffs or stay as absent members.

Call to Action

Individuals who have pertinent information regarding WM Technology’s practices are encouraged to communicate with Faruqi & Faruqi. The firm is open to insights from whistleblowers, former employees, and shareholders who might have witnessed or experienced any fraudulent activities.

Faruqi & Faruqi, LLP has been a prominent player in the securities law sector since its establishment in 1995, recovering significant monetary settlements for investors over the years. They have extensive experience in handling class action lawsuits and are dedicated to advocating for shareholders who may have been adversely affected by corporate misconduct.

Conclusion

The investigation into WM Technology reflects the critical role of transparency and accurate reporting in maintaining investor trust in the financial markets. As the situation unfolds, affected investors should remain vigilant and proactive in seeking their legal rights. For further details, individuals can visit the firm’s dedicated website or contact their office directly for more personalized assistance regarding this urgent matter.