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The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Aterian, Inc. f/k/a Mohawk Group Holdings, Inc. ("Aterian" or the "Company") (NASDAQ: ATER, MWK) securities between December 1, 2020 and May 3, 2021, inclusive (the "Class Period"). Aterian investors have until July 12, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On May 4, 2021, Culper Research published a report titled "Aterian (ATER): Bought from Felons & Fraudsters, Sold to You," alleging that Aterian has "ties to convicted criminals" and is "promoting what we believe is an overhyped ‘AI’ narrative and a string of garbage acquisitions to mask the failure of its already ill-conceived core business." Culper also alleges that "[o]ver 25% of Aterian shares now belong to two felons and two alleged scam artists, all of whom will be free to dump their stock by August." The report alleged that the Company "has been largely unsuccessful in convincing other Amazon sellers to pay for its ‘AIMEE’ AI platform, and at least 5 former employees and a former customer have expressed doubts regarding AIMEE’s legitimacy."
On this news, Aterian’s stock price fell $4.94 per share, or 24%, over two trading sessions to close at $15.72 per share on May 5, 2021, thereby injuring investors.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s organic growth is plummeting; (2) the Company’s recent, self-lauded acquisitions were overpayments for flawed assets from questionable sources; (3) Aterian’s purported artificial intelligence software is a flawed product that lacks customer interest; (4) Aterian uses rebate programs and paid or artificial reviews to pump up their product offerings; and (5) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Aterian securities during the Class Period, you may move the Court no later than July 12, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Aterian securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210518005227/en/