SAN FRANCISCO, Dec. 05, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges Alfi, Inc. (NASDAQ: ALF) investors with significant losses to submit your losses now. A securities fraud class action lawsuit has been filed and certain investors may have valuable claims.
Alfi, Inc. (ALF) Securities Class Action:
The lawsuit alleges that Defendants made false and misleading statements in Alfi’s offering documents in connection with the company’s May 4, 2021 initial public offering and thereafter throughout the Class Period, concerning the effectiveness of Alfi’s internal controls over financial reporting and disclosures.
The truth about Alfi’s internal control weaknesses began to emerge on Oct. 28, 2021, when the company announced its board (1) placed each of Alfi’s CEO (Paul Pereira), CFO (Dennis McIntosh), and CTO (Charles Pereira) on administrative leave, and (2) authorized an internal investigation regarding certain corporate transactions and other matters.
Next, on Nov. 1, 2021, Alfi announced its outside auditor resigned after just 11 days on the job. The company also revealed that its internal investigation resulted from “the Company’s purchase of a condominium for a purchase price of approximately $1.1 million” and “the Company’s commitment to sponsor a sports tournament in the amount of $640,000,” both of which “were undertaken by the Company’s management without sufficient and appropriate consultation with or approval by the Board.”
Then, on Nov. 15, 2021, Alfi revealed it received a subpoena from the SEC directing the company to preserve documents and data related to the condominium and sports tournament sponsorship and to the company’s financial reporting and disclosure controls.
These events drove the price of Alfi shares sharply lower.
“We’re focused on recovering investors’ losses and proving Alfi lied about controls that should have prevented management misconduct,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Alfi and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Alfi should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ALF@hbsslaw.com.
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Reed Kathrein, 844-916-0895