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Case Status:    SETTLED
On or around 04/16/2024 (Date of last review)

Filing Date: February 03, 2022

According to the Complaint, Electric Last Mile Solutions, Inc. ("ELMS" or the "Company") purports to be a pure-play commercial electric vehicle company.

On June 25, 2021, Electric Last Mile, Inc. and Forum Merger III Corp., a special purpose acquisition company (“SPAC”) or blank check company, closed the merger which resulted in ELMS.

The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) ELMS’s previously issued financial statements were false and unreliable; (2) ELMS’s earlier reported financial statements would need restatement; (3) certain ELMS executives and/or directors purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation; (4) on November 25, 2021 (Thanksgiving), the Company’s Board formed an independent Special Committee to conduct an inquiry into certain sales of equity securities made by and to individuals associated with the Company; 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.

On April 22, 2022, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 22-CV-00545.

On June 14, 2022, Electric Last Mile Solutions, Inc. filed a voluntary petition for relief under chapter 7 of title 11 of the United States Bankruptcy Code in the United States Bankruptcy Court of the District of Delaware.

Lead Plaintiff filed an amended Complaint on October 21, 2022.

On April 11, 2023, the parties notified the Court that they had reached an agreement in principle to settle the case. On June 26, the parties entered into a Stipulation of Settlement. On August 1, the Court denied Plaintiffs' Motion for preliminary approval of the Settlement. Plaintiffs renewed their Motion for preliminary approval of the Settlement on August 9. The parties amended the Stipulation of Settlement on September 20. The parties filed a second amended Stipulation of Settlement on March 21.

On April 2, 2024, the Court granted preliminary approval of the Settlement.

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