Meta Materials (MMAT) $3M Shareholder Settlement
Meta Materials (MMAT) agreed to settle $3M with investors to resolve claims related to the Torchlight Energy Resources' deal.
Outline:
On September 21, 2020, Meta Materials announced a merger with Torchlight. Executives heavily promoted the merger, assuring shareholders of its benefits. However, after that, the companies were accused of overstating business connections and overall product potential. Due to this news, $MMAT fell significantly, and Meta Materials was hit with the suit from investors.
Timeline:
On September 21, 2020: Meta Materials announced a merger with Torchlight.
On March 3, 2021: The SEC issued a letter about inadequate disclosures.
On March 4, 2021: After the news, $MMAT fell 15.53%.
On November 15, 2021: Meta disclosed a SEC subpoena, revealing serious regulatory issues with the merger.
On November 16, 2021: After that, $MMAT fell again 3.9%.
On January 3, 2022: A stockholder filed a lawsuit against Meta Materials for misleading statements about the merger.
Background:
On September 21, 2020, Meta Materials announced a business combination with Torchlight.
Executives heavily promoted the merger, assuring shareholders of its benefits.
In a press release, they claimed that the merger would provide "shareholders with access to the multi-billion-dollar target market and new applications that are being revolutionized with sustainable technologies" and "will continue to service a clientele of world-class OEM customers for a range of applications in the automotive, aerospace and defense, energy, consumer electronics and medical markets".
However, after all the releases, the SEC issued a letter on March 3, 2021, regarding inadequate disclosures related to the merger.
Following the news, $MMAT fell 15.53% on March 4, 2021.
On November 15, 2021, Meta disclosed a SEC subpoena revealing regulatory issues with the merger. The subpoena asks the Company to provide more information about the merger between Torchlight and Metamaterials for further investigations.
After the SEC subpoena disclosure, $MMAT fell again 3.9% on November 16, 2021.
On January 3, 2022, a stockholder filed a lawsuit against Meta Materials for misleading statements about the merger.
What can investors expect now?
Meta Materials (MMAT) has agreed to settle $3 million with investors to resolve claims related to this Torchlight Energy Resources' deal.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons or entities who purchased or otherwise acquired: (I) Meta Materials Inc. f/k/a Torchlight Energy Resources, Inc. (MMAT) common stock, Meta Materials and/or Torchlight Call Option contracts between September 21, 2020 and June 24, 2022, inclusive; (II) Torchlight Energy Resources, Inc. stock held as of May 5, 2021, the record date for shares eligible to vote on the merger with Metamaterial, Inc.; and (III) Torchlight stock held as of June 28, 2021, the date the merger with Metamaterial, Inc. closed, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.015 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.06 per share.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.