According to the Complaint, Aterian, Inc. purports to be a “technology enabled consumer products platform that builds, acquires and partners with e-commerce brands". The Company’s proprietary software and highly agile supply chain helps its e-commerce customer create top-selling consumer products. Aterian predominantly operates through online retail channels such as Amazon and Walmart, Inc.

Through April 29, 2021, Aterian was known as Mohawk Group Holdings, Inc., and its shares traded on the NASDAQ stock exchange under the ticker symbol “MWK.” Effective April 30, 2021, the Company changed its name to Aterian, and its shares began trading under the ticker symbol “ATER” on the NASDAQ stock exchange.

The Complaint alleges that during the Class Period, Defendants issued statements that were materially false and misleading and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants misled investors by misrepresenting and/or failing to disclose that: (i) the Company’s organic growth is plummeting; (ii) the Company’s recent, self-lauded acquisitions were overpayments for flawed assets from questionable sources; (iii) Aterian’s purported artificial intelligence software is a flawed product that lacks customer interest; (iv) Aterian uses rebate programs and paid or artificial reviews to pump up their product offerings; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On August 10, 2021, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on October 12 and corrected the amended Complaint on October 14. The Court issued an Order consolidating cases on October 28. All future docketing was ordered to be done in the lead case 21-CV-04323.

On November 3, 2021, Lead Plaintiff filed a second amended Complaint. Also on November 3, the Court issued an Order deconsolidating shareholder derivative actions from the related securities class action. Lead Plaintiff filed a third amended Complaint on January 5, 2022.

On April 22, 2022, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on May 5. On September 12, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On March 31, 2023, the Court issued an Order approving distribution of the class Settlement funds.