RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the District of New Jersey on behalf of all persons or entities that purchased Alliance MMA, Inc. (“Alliance MMA” or the “Company”) (NASDAQ: AMMA) securities pursuant and/or traceable to Alliance MMA’s initial public offering on or about October 6, 2016 or between October 6, 2016 and April 12, 2017, inclusive (the “Class Period”).
Alliance MMA shareholders may, no later than June 16, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Alliance MMA and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com/case/amma.
Alliance MMA, Inc. focuses on mixed martial arts (MMA) promotional activities. It operates through live MMA Event Promotions, MMA Content Distribution, and Sponsorships and Promotion segments.
According to the complaint, on October 6, 2016, Alliance held its IPO, selling approximately 3.3 million shares at $4.50 per share and raising approximately $14.99 million in net proceeds. The complaint alleges that Alliance’s registration statement that was filed in connection with its IPO failed to disclose that the condensed consolidated financial statements for the three months ended June 30, 2016, and for the six months ended June 30, 2016, could not be relied upon due to an error in recognizing as compensation transfers of common stock by an affiliate of the company to individuals who were at the time of transfer, or subsequently became, officers, directors or consultants of the company.
On April 12, 2017, Alliance filed a Form 8-K with the U.S. Securities and Exchange Commission revealing that certain of its financial statements should no longer be relied upon. The company further noted that it plans to include revised financial information in its Form 10-K for the year ended December 31, 2016, and that the company’s chief financial officer has “discussed the determination to restate these financial statements with its independent accounting firm.” Since its IPO, shares of Alliance have plummeted over 50%, closing at $2.24 per share on April 13, 2017.
If you are a member of the class, you may, no later than June 16, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.