Meta Materials (NASDAQ:MMAT) announced on Monday a favorable ruling in the company’s latest class action lawsuit.
Shares of the nanotechnology company have risen more than +5% starting the new week.
However, the company stock is still down -80% this year-to-date.
“The lawsuit, initially filed in January 2022, consolidated two separate class action lawsuits primarily stemming from a short-seller report and statements related to META’s business and its proposed combination with Torchlight Energy Resources, Inc.
The court’s decision dismisses these allegations,” the press release said.
Meta Materials announced that the U.S. District Court for the Eastern District of New York has granted the Company’s motion to dismiss the securities class action lawsuit previously disclosed.
The court ruled that the complaint fails to plead any false statements, material omissions, or a strong inference of fraudulent intent by META or the other named defendants.
The court’s order dismisses all claims against all defendants, including META.
“We appreciate the court’s thorough examination of the complaint and the Company’s motion. Our priority remains serving our shareholders and continuing our work in the field of advanced materials and nanotechnology towards developing solutions that make a difference in people’s lives.” said George Palikaras, President and CEO of Meta Materials.
“We are deeply appreciative of the trust, patience and support our shareholders, customers and partners have demonstrated throughout this process.”
Plaintiffs may still seek to appeal the court’s decision.
Related: MMAT Issues New $25 Million Public Offering
Senator Inquiries Now Grow in The MMTLP Scandal
In other related Meta Materials news, Senator inquires have now begun to grow in the MMTLP scandal as Senator Vance joins Senator Crapo in the pursuit for answers.
Last week, Rep. David Valadao, California’s 22nd Congressional District, requested an audited share count.
“Considering the seriousness of this situation and the substantial consequences on my constituents, I urge your prompt attention. I appreciate your consideration of this critical issue,” said the Congressman.
When Rep. Ralph Norman asked Chairman Gensler if he was aware of the MMTLP situation and whether he knows what the aggregated share count is, the SEC Chair failed to address whether the SEC had that information on file.
A new letter is now making its way around social media from Senator Crapo addressing SEC Chairman Gary Gensler yet again, except this time we see Senator Vance has also signed the request.
“We write today requesting that the U.S. Securities and Exchange Commission (SEC) examine events surrounding the trading halt of Meta Materials Series A preferred shares (MMTLP) and provide appropriate information to Senate offices engaged on this matter.
As noted by our House counterparts in a letter dated July 28, 2023, MMTLP shares began trading on the over-the-counter (OTC) market in 2021. In 2022, the SEC approved a Form S-1 and amendments to spin-off a portion of the company, Meta Materials, into a new company, Next Bridge Hydrocarbons. On December 9, 2022, FINRA issued a trading halt on the company’s stock, preventing shareholders from making further trades.
In FINRA’s FAQ regarding the MMTLP corporate action and trading halt, it is noted that Next Bridge Shares would be distributed to MMTLP shareholders with settled positions as of December 12, 2022, and FINRA halted trading on December 9 because securities transactions typically must settle within two business days in accordance with SEC rules.
Since December’s events, investors across the country have struggled to gain clarity regarding both the spin-off transaction and the halt on trading. Therefore, we echo our House counterparts and request that the SEC review these market events and any corporate filings made with the Commission. It is equally important to our constituents that the SEC further scrutinize these matters to determine if any wrongdoing occurred.
We hope for a timely response to this matter, and ask that the SEC provided detailed information and analysis.”
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