AMMO(POWW) GlobeNewswire News Room·2024-12-04 02:00Core Viewpoint - AMMO, Inc. is under investigation for potential breaches of fiduciary duties by its board of directors following a class action complaint related to financial reporting issues and internal controls [1][3]. Group 1: Company Developments - On September 24, 2024, AMMO announced the resignation of its Chief Financial Officer at the request of the Board and disclosed an independent investigation into its internal control over financial reporting for fiscal years 2020 through 2023 [2]. - The investigation will assess whether the company accurately disclosed executive officers, management members, and related party transactions, as well as the proper characterization of fees and valuation of stock awards during fiscal years 2020 to 2023 [2][3]. - Following the announcement, AMMO's share price fell by 1.44 per share on September 25, 2024, with unusually high trading volume [2]. Group 2: Class Action Complaint Details - The class action complaint alleges that AMMO made materially false and misleading statements and failed to disclose adverse facts about its business and operations during the class period from August 19, 2020, to September 24, 2024 [3]. - Specific allegations include inadequate internal controls over financial reporting, failure to accurately disclose management and related party transactions, improper characterization of fees, and inappropriate valuation of stock awards [3].