RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Tattooed Chef, Inc. ("Tattooed Chef" or the "Company") (NASDAQ: TTCF) securities during the period from March 20, 2021 through October 12, 2022, inclusive (the “Class Period”).
Tattooed Chef shareholders may, no later than February 21, 2023, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Tattooed Chef 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, click here.
According to the complaint, defendants failed to disclose that Tattooed Chef continuously downplayed its serious issues with internal controls and its financial statements from March 31, 2021 to the present included “certain errors” such as overstating revenue and understating losses. As a result, Tattooed Chef would need to restate its previously filed financial statements for certain periods.
On October 12, 2022, after market hours, the Company announced that it would restate its financial statements from March 31, 2021 to the present and revealed for the first time it had misstated revenue on each quarterly report. The Company also made numerous other changes in financial statements that revealed the extent of internal control weaknesses. Specifically, Tattooed Chef “(a) incorrectly recorded expenses related to a multi-vendor mailer program with a large customer as operating expenses rather than as a reduction of revenue, and (b) incorrectly recorded expenses for advertising placement by a marketing services firm on a straight-line basis over the life of the contract rather than when the services were actually rendered.” On this news, Tattooed Chef’s share price fell $0.44 per share, or 9.8%, to close at $4.05 per share on October 13, 2022.
If you are a member of the class, you may, no later than February 21, 2023, 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.