TMC THE METALS COMPANY INC. (NASDAQ: TMC) SHAREHOLDER CLASS ACTION FILING DEADLINE- Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against TMC the metals company Inc.
NEW YORK, Nov. 15, 2021 /PRNewswire/ -- Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion no later than December 27, 2021in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of TMC the metals company Inc. ("TMC") (NASDAQ: TMC, TMCWW, SOAC, SOAC.U, SOACWS) f/k/a Sustainable Opportunities Acquisition Corporation) between March 4, 2021 and October 5, 2021, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Eastern District of New York and alleges violations of the Securities Exchange Act of 1934.
TMC is a Canadian deep-sea minerals exploration company focused on the collection, processing, and refining of polymetallic nodules found on the seafloor of the Clarion Clipperton Zone of the Pacific Ocean (the "CCZ"). Deep sea exploration rights are regulated by the International Seabed Authority ("ISA"). TMC's primary assets are three exploration licenses granted by the ISA. These licenses, which are held via three subsidiaries, are: (i) Nauru Ocean Resources Inc. ("NORI"); (ii) Marawa Research and Exploration Limited ("Marawa"); and (iii) Tongo Offshore Mining Limited ("TOML").
According to the complaint, Defendants made false and/or misleading statements and failed to disclose, among other things, that: (1) TMC had significantly overpaid undisclosed insiders to acquire TOML; (2) TMC artificially inflated its NORI exploration expenditures to give investors a false scale of its operations; (3) TMC's purported 100% interest in NORI was questionable given prior disclosures to the ISA that NORI was wholly owned by two Nauruan foundations, and that all future income from NORI would be used in Nauru; (4) there were serious environmental risks of deep-sea mining polymetallic nodules; (5) TMC's private investment in public equity (PIPE) financing was not fully committed and, therefore, TMC would not have the cash necessary for large sale commercial production; and (6) TMC's valuation was significantly less than Defendants represented.
On September 13, 2021, Bloomberg published an article revealing that two investors had failed to provide $330 million as part of the PIPE component of TMC's go-public deal. The article also questioned TMC's "green credentials," revealing that "[e]nvironmentalists claim that TMC's activities will damage sensitive ecosystems and destroy vital biodiversity" and that "[s]ince the SPAC deal was announced in March, more than 500 scientists have signed a letter calling for a moratorium on deep-sea mining until the environmental risks are better understood." On this news, TMC's shares fell $2.45 per share, or over 20%, damaging investors.
On October 6, 2021, before market hours, market research firm Bonitas Research released a report detailing multiple issues plaguing TMC, including that it had overpaid on licenses to potential undisclosed insiders, had artificially inflated exploration expenses by more than 100%, had questionable ownership claims to NORI, and had a history of affiliating with bad actors. On this news, TMC shares fell another 7%, further damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than December 27, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.