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HMBL.PRVT
id: 1542
HUMBL ($HMBL) Misleading Product Claims and Securities Fraud Case
The defendant has requested the court to dismiss the case.
D. Delaware
Court1:23-cv-00743
Case number11/21/2020
Class period Start02/14/2022
Class period End- $HMBL investors filed a lawsuit against HUMBL for misleading investors about its mobile app features, fake partnerships, inflated valuations, and unregistered securities.
- After multiple exposés and financial filings revealed the company had no functioning products or real revenue, $HMBL dropped by over 90%.
Case Details:
Between late 2020 and 2022, HUMBL ($HMBL) promoted itself as a global digital payments and blockchain platform. The company claimed its “HUMBL Pay” app could send and receive digital assets, support peer-to-peer payments, and drive adoption in underserved markets. It also announced high-profile partnerships and acquisitions, including deals in India, Africa, and Oceania, and promoted its own NFT gallery and unregistered digital asset index products called BLOCK ETXs.
But in reality, most of HUMBL’s products didn’t function. Independent investigations revealed that key features in the HUMBL Pay app—like sending or receiving money—simply didn’t work. Promised international partnerships were either fake, inactive, or abandoned. HUMBL exaggerated the reach and capabilities of its app, falsely claimed high demand, and hyped endorsements from paid promoters without disclosing compensation.
The company also issued BLOCK ETX products—unregistered digital securities marketed as safe investment tools—but failed to register them with the SEC. Meanwhile, executives engaged in repeated dilution schemes through insider stock deals and toxic debt, all while promoting new “disruptive” ventures to keep the stock price inflated. Once insider share restrictions expired in December 2021, top executives began cashing out.
Based on these events, $HMBL investors filed a lawsuit against HUMBL, claiming the company:
- It misled investors by promoting fake partnerships, non-functional products, and inflated app capabilities.
- It sold unregistered securities through its BLOCK ETX products and failed to disclose critical risks.
- It engaged in a scheme to inflate share prices and quietly profit while leaving shareholders with worthless stock.
Investors believe HUMBL ran a coordinated campaign to build hype around failed products.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
06/30/2021
Filing date
05/19/2022
Judge
Anthony J. Battaglia