Investigation Announced for WM Technology (NASDAQ: MAPS) Investors
Investigation into WM Technology Unveiled
The Law Offices of Howard G. Smith has recently announced an investigation into WM Technology, Inc. (“WM Technology” or the “Company”), which trades under the ticker symbol NASDAQ: MAPS. This investigation stems from possible violations of federal securities laws that may have occurred.
Concerns Over Monthly Active Users
On August 9, 2022, WM Technology disclosed that it received an internal complaint regarding the calculation and reporting of its Monthly Active Users (MAUs). The revelation indicated that a considerable amount of its MAU growth was attributed to pop-under advertising. Upon further investigation, the Company acknowledged that most users acquired through these ads left the site shortly after visiting, without engaging further.
Impact on Stock Prices
The fallout from this announcement was swift, causing the Company’s stock price to drop by $0.87, a staggering 25.1%, ultimately closing at $2.59 per share by August 10, 2022. This sharp decline resulted in significant losses for investors who held shares at the time.
SEC Charges and Legal Proceedings
Fast forward to September 24, 2024, when the Securities and Exchange Commission (SEC) made headlines with the announcement that it charged WM Technology, along with its former CEO Christopher Beals and former CFO Arden Lee, for making negligent misrepresentations in the public reporting of what it described as a key operating metric: the MAU for WM Technology’s online cannabis marketplace.
Financial Penalties Imposed
Furthermore, the SEC highlighted that it had instituted a related settled administrative proceeding against WM Technology, resulting in the Company agreeing to pay a substantial civil penalty of $1,500,000. Following this news, the stock price dropped an additional $0.02 or 1.89%, closing at $0.92 per share on September 25, 2024, compounding the challenges faced by investors.
What Investors Should Do Now
If you are among the investors who purchased WM Technology securities, or if you possess pertinent information regarding these claims, now is the time to act. Investors are encouraged to seek out legal support to understand their rights and interests in light of these recent developments.
Contact Information
If you have questions about this case or would like to learn more, please reach out to Howard G. Smith, Esquire, at the Law Offices of Howard G. Smith, located at 3070 Bristol Pike, Suite 112. You can contact the office by phone at (215) 638-4847 or explore further details by visiting the firm’s website.
Frequently Asked Questions
What is the issue with WM Technology?
WM Technology is under investigation for potential violations of federal securities laws concerning its reporting of Monthly Active Users.
How did the internal complaint affect investors?
The internal complaint revealed inaccuracies in reporting, leading to a significant drop in stock prices, which harmed investor interests.
What action has the SEC taken against WM Technology?
The SEC charged WM Technology and its former executives for negligent misrepresentation, resulting in a $1.5 million penalty.
What are the consequences of these events for shareholders?
The declines in stock prices following these disclosures indicate potential financial damage to shareholders who invested before the announcements.
How can affected investors seek help?
Investors who believe they have been harmed can contact the Law Offices of Howard G. Smith for advice on legal rights and options.
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