SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that it has filed a class action lawsuit on behalf of buyers of Aterian, Inc. (NASDAQ: ATER) securities between December 1, 2020 and May 3, 2021 in the Southern District of New York became, including (the “Class Period”). The case is titled Tate v. Aterian, Inc., No. 21-cv-4323, and is assigned to Judge Victor Marrero. The Aterian class action lawsuit charges Aterian and some of its top executives for violating the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 allows any investor who acquired Aterian securities during the class action period to be appointed as the lead plaintiff in the Aterian class action. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all other group members in directing the Aterian class action lawsuit. The lead plaintiff can choose a law firm of their choice to bring the Aterian class action lawsuit. An investor’s ability to participate in a possible future recovery of the Aterian class action lawsuit does not depend on being the lead plaintiff. If you would like to stand as the lead plaintiff in the Aterian class action or have any questions about your rights in relation to the Aterian class action, please complete your information here or contact Michael Albert von Robbins Geller at 800 / 449-4900 or 619 / 231-1058 or by email to email@example.com. Lead plaintiffs’ motions for the Aterian class action must be filed in court by July 12, 2021.
Aterian is a “technology-enabled consumer product platform that builds, acquires, and collaborates with e-commerce brands.” Aterian primarily operates through online retail channels such as Amazon and Walmart, Inc. On December 1, 2020, Aterian announced that it had acquired the assets of “leading e-commerce corporate brands Mueller, Pursteam, Pohl and Schmitt and Spiralizer” from 9830 Macarthur LLC, ZN Direct LLC and Reliance Equities Group, LLC.
Aterian’s class action alleges that during the collection period, defendants made false and misleading statements and failed to disclose that: (i) Aterian’s organic growth had collapsed; (ii) Aterian’s most recent self-lauded acquisitions were overpayments for defective assets from questionable sources; (iii) Aterian’s alleged artificial intelligence software was a flawed product that lacked customer interest; (iv) Aterian used discount programs and paid for artificial reviews to improve its product offering; and (v) as a result, Aterian’s public statements at all relevant times have been materially false and misleading.
On May 4, 2021, analyst Culper Research published a damning report entitled: “Aterian (ATER): Bought from Felons & Fraudsters, Sold to You”. In that report, Culper wrote that Aterian “has connections with convicted criminals and is promoting what we believe to be an exaggerated AI narrative and a series of trash purchases to cover up the failure of its already ill-conceived core business.” Culper continued, “Aterian has been largely unsuccessful in convincing other Amazon sellers to pay for its AI platform ‘AIMEE’ and at least 5 former employees and one former customer have expressed doubts about AIMEE’s legitimacy. We believe that Aterian’s underlying business has failed and is forcing [Aterian] masking its poor performance with a series of questionable acquisitions. “Culper continued,” We believe Aterian’s claims to maintain strong organic growth and drive M&A synergies have serious problems: we don’t seem to think either of them. . . . From our point of view, this indicates that Aterian not only cannot increase the EBITDA of the acquired businesses, but also does not produce its core business. ”Because of this news, the price of the Aterian share fell by around 24% in the following two trading days, which harmed investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms serving investors in securities class actions. With 200 attorneys in 9 offices, Robbins Geller has received many of the largest stock class recovery claims in history. ISS Securities Class Action Services has ranked Robbins Geller as one of the world’s top law firms since 2010, both in terms of amount recovered and the total number of class action settlements for shareholders each year since 2010. The SCAS 2020 Top 50 Report ranked Robbins Geller in first place when he got $ 1.6 billion back for investors last year, more than double the amount recovered from any other claimant firm. Robbins Geller’s lawyers helped shape the securities laws and recovered tens of billions of dollars on behalf of the injured victims. In addition to securing the financial recovery of cheated investors, Robbins Geller also specializes in the implementation of corporate governance reforms, thereby helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are recognized by the courts, professional associations and the media as the leading attorneys in the industry. More information is available at http://www.rgrdlaw.com.