Aqua Metals, Execs Have Questions to Answer in Securities Class Action Case
Last Updated on May 8, 2018
Heath v. Aqua Metals, Inc. et al
Filed: December 19, 2017 ◆§ 3:17cv7196
A securities lawsuit says Aqua Metals was not forthcoming about certain aspects of its water-based lead refining operation, hurting company stock prices.
A proposed class action has been filed in California against Aqua Metals, Inc. and three of its chief executives on behalf of investors who purchased or otherwise acquired securities for the lead recycling company between May 19, 2016 and November 9, 2017. The 34-page lawsuit most prominently alleges the company issued false and/or misleading statements that misrepresented the business and technological development of AquaRefining, a water-based and temperature-controlled process by which the defendant company recycles lead.
The lawsuit, describing a series of press releases and announcements issued by Aqua Metals during the aforementioned class period, sticks on a May 2017 press release in which the defendants allegedly withheld or recklessly disregarded facts about the company’s business, operations and prospects. From the lawsuit:
“Specifically, [the defendants] made false and/or misleading statements and/or failed to disclose that:
- The company was touting the business value of the Interstate Battery Partnership and the [Johnson Controls International] partnership, primarily because
- The company was aware of and ignoring material unresolved deficiencies in the AquaRefine technology and process preventing large scale development;
- The company was experiencing numerous execution and operational issues preventing scaling and production ramp up at its facility;
- The company was unable to produce and generate revenue from its core business, therefore remaining unprofitable, and
- As a result of the foregoing, [the defendants’] statements about its business operations were materially false and misleading at all relevant times.”
As the truth about AquaRefining was revealed to investors, the complaint says, Aqua Metals stock prices sank from $10.87 per share on August 9, 2017, to $8.31 per share on August 10, 2017, a drop of roughly 23.55 percent.
The lawsuit says the alleged misstatements from Aqua Metals continued through November 2017, with company stock closing at $3 per share on November 14.
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