This is a securities fraud class action on behalf of all purchasers of the common stock of Electric Last Mile Solutions, Inc. ("ELMS") directly in the private investment in public equity (“PIPE”) offering conducted by ELMS on or about December 10, 2020.

According to the Complaint, Electric Last Mile Solutions, Inc. is a former commercial EV company that was focused on covering the “last mile” of deliveries, which has since filed for bankruptcy. Prior to its delisting, ELMS was a publicly traded company created through the June 25, 2021 merger of a privately held company called Electric Last Mile, Inc. (“ELM”) and a publicly traded special purpose acquisition company, then called Forum Merger III Corporation.

The Complaint alleges that during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had acquired Electric Last Mile common stock at substantial discounts to market value in transactions completed before the PIPE Offering; (ii) the difference between the fair market value of the Electric Last Mile common stock sold in the pre-PIPE Offering transactions and the amount actually paid had not been properly recorded as compensation expense by Electric Last Mile; (iii) the failure to record compensation expenses stemming from the pre-PIPE Offering transactions had the effect of substantially inflating Electric Last Mile’s year-end 2020 financial performance and the pro forma year-end 2020 financial performance of the combined company, thereby understating expenses, net loss, and shareholders’ deficit; (iv) as a result, Electric Last Mile’s historical financial statements could no longer be relied upon and would need to be restated; (v) the Electric Last Mile historical financial statements provided in proxy statements were not prepared in accordance with Generally Accepted Accounting Principles; and (vi) BDO had failed to follow applicable laws, rules, and regulations regarding auditor independence in auditing the Electric Last Mile historical financials provided in proxy statements.

On August 31, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel.