Berman Tabacco Announces Investigation Electric Last Mile Solutions, Inc. (ELMS, ELMSW) for Potential Securities Law Violations

Boston, Massachusetts--(Newsfile Corp. - February 2, 2022) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Electric Last Mile Solutions, Inc. f/k/a Former Merger III Corporation ("ELMS" or "the Company") (NASDAQ: ELMS) (NASDAQ: ELMSW), an electric vehicle company based in Troy, Michigan.

On December 11, 2020, the Company, a special purpose acquisition company, announced that it would combine with Electronic Last Mile, Inc. On June 25, 2021, the Company announced that the combination was approved by its shareholders and that its common stock and publicly traded warrants would begin trading on the Nasdaq Stock Market under the symbols "ELMS" and "ELMSW", respectively on June 28, 2021.

On February 1, 2022, after the market close, the Company issued a press release announcing that the Company's Chief Executive Officer and Executive Chairman of the Board of Directors ("Board") resigned from the Company following "an investigation conducted by a Special Committee of the Board of Directors."

The Company further disclosed that on "November 25, 2021, 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, the legal, disclosure and tax consequences of those transactions, and other issues that arose in connection those sales." Based on the Special Committee's investigation, the Company "concluded that in November and December 2020, shortly before the Company's December 10, 2020 announcement of a definitive agreement for a business combination with Forum Merger III Corporation, certain Electric Last Mile Inc. executives purchased equity in the Company at substantial discounts to market value without obtaining an independent valuation."

Additionally, the Company stated that "on January 26, 2022, on the basis of the Special Committee investigation, the Board concluded that the Company's previously issued consolidated financial statements should be restated and, therefore, should no longer be relied upon."

On this news, the Company's common shares were down over 30% in pre-market trading on February 2, 2022.

If you purchased If you purchased ELMS securities between December 11, 2020 and February 1, 2022, sustained substantial losses, and would like to discuss your legal rights and/or options, please submit your information here.

Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.

This notice may constitute attorney advertising.

Contact:

Berman Tabacco
Jay Eng, Esq.
One Liberty Square
Boston, Massachusetts
(800) 516-9926
Email: law@bermantabacco.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112496