Meta Materials Announces Update on Naked Short Selling Investigation
Meta Materials (NASDAQ: MMAT), a company specializing in advanced materials and nanotechnology, has provided an update on its investigation into naked short selling which began in June 2023. An initial analysis by Shareholder Intelligence Services suggested potential manipulation. Consequently, law firms Christian Attar and Warshaw Burstein were hired to investigate further.
The investigation, now concluded, confirms that META has valid claims of market manipulation against multiple entities. James "Wes" Christian of Christian Attar expressed confidence in META's actionable case. META's Board Chairman, Jack Harding, emphasized the importance of the collected data and announced plans to share findings with regulatory bodies and initiate legal proceedings in the upcoming quarters.
META will continue to provide updates as new information emerges.
- META has identified meritorious claims of market manipulation.
- The company received validation from reputable law firms.
- META plans to share findings with regulatory agencies.
- Legal proceedings are expected to be initiated soon.
- The investigation into naked short selling began almost a year ago.
- Potential market manipulation issues could negatively impact stock perception.
- Pending legal actions could result in prolonged legal expenses.
Insights
The ongoing investigation into naked short selling by Meta Materials (META) reveals critical information for investors. The conclusion by the law firms that META has meritorious claims for market manipulation is a significant step. Naked short selling is illegal because it involves selling shares that have not been borrowed, often driving down the stock price. The legal findings suggest that META might pursue litigation against financial firms, potentially recovering damages and rectifying stock price distortions.
For retail investors, this development is a double-edged sword. On the one hand, successful litigation might restore the stock's true value and boost investor confidence. On the other hand, legal battles are time-consuming and costly, potentially diverting company resources. Investors should weigh the potential for a lengthy court process against the prospect of favorable outcomes.
Being a complex legal issue, it is imperative to understand the role of regulatory bodies like the SEC, which may get involved following META's findings. Regulatory intervention could hasten the resolution but also brings an element of uncertainty.
It's also worth noting the potential impact on the broader market and other companies facing similar issues. A win for META could set a precedent, leading to increased scrutiny of trading practices across the board.
From a financial perspective, META's announcement about its naked short selling investigation is noteworthy. Market manipulation through naked short selling can artificially depress a stock's price, affecting not only current valuations but also the company's ability to raise capital. META's proactive approach to tackle this issue indicates robust corporate governance and a commitment to protecting shareholder value.
For investors, the potential upside includes a revaluation of the stock if litigation is successful and the market price is corrected. However, legal proceedings are uncertain and can be protracted, implying potential volatility. Investors should watch for updates on the case's progress and any financial impact disclosed by META in subsequent press releases.
Additionally, the legal fees and resources allocated towards this investigation are noteworthy. While META's financial health appears stable, significant legal expenses might affect cash flows in the short term. The long-term benefits, however, could outweigh these costs if the company successfully curtails market manipulation and restores market confidence.
It's important for retail investors to monitor the situation closely, considering both the immediate financial implications and the potential for a long-term price correction.
HALIFAX, NS / ACCESSWIRE / May 20, 2024 / Meta Materials Inc. (the "Company" or "META") (NASDAQ:MMAT), an advanced materials and nanotechnology company, today announced an update on the short selling investigation undertaken in June of 2023.
In an initial press release from late June 2023, META outlined its preliminary analysis of potential naked short selling, and retained well-known analytics firm, Shareholder Intelligence Services, LLC to review trading patterns of the Company's common stock. Based on this analysis, and with zero tolerance for illegal naked short selling and other stock manipulation, META employed the services of law firms, Christian Attar and Warshaw Burstein (collectively "Lawyers") to determine merit of such claims.
Since June 2023, the Lawyers have conducted an exhaustive investigation and undertaken in-depth due diligence. The Lawyers have now concluded that META has meritorious claims for market manipulation against several parties. "I believe META has an actionable case in connection with its MMAT/MMTLP claims. We look forward to working with the company," noted James "Wes" Christian, partner with Christian Attar.
Noted META Board Chairman, Jack Harding, "We needed all available data (unearthed by these esteemed securities law firms) at our disposal to delineate stock manipulation, and by which parties. We are now equipped with the necessary information to act and will be further sharing these findings with regulatory agencies. Simultaneously, we expect to file legal proceedings in the coming quarters against the responsible financial service firms." META looks forward to releasing additional press releases as more information becomes available.
About Meta Materials Inc.
Meta Materials Inc. (META) is an advanced materials and nanotechnology company. We develop new products and technologies using innovative sustainable science. Advanced materials can improve everyday products that surround us, making them smarter and more sustainable. META® technology platforms enable global brands to develop new products to improve performance for customers in aerospace and defense, consumer electronics, 5G communications, batteries, authentication, automotive and clean energy. Learn more at www.metamaterial.com.
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Forward Looking Information
This press release includes forward-looking information or statements within the meaning of Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, regarding the Company, which may include, but are not limited to, statements with respect to the costs associated with the workforce reduction, the expected timing of implementing and completing the workforce reduction, and the Company's review and evaluation of potential strategic alternatives. Often but not always, forward-looking information can be identified by the use of words such as "pursuing", "potential", "predicts", "projects", "seeks", "plans", "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "should", "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of the Company and are based on assumptions and subject to risks and uncertainties. Although the management of the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company. For a discussion of these risks and uncertainties, and other important factors, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in subsequent filings with the Securities and Exchange Commission ("SEC"), as well as discussions of potential risks, uncertainties and other important factors in the Company's subsequent filings with the SEC. Forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required by law.
SOURCE: Meta Materials Inc.
View the original press release on accesswire.com
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