The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Polished.com Inc. f/k/a 1847 Goedeker Inc. (POL)
On or about July 27, 2020, the Company completed its IPO, issuing approximately 1,111,200 shares at $9.00 per share.
The Law Offices of Frank R. Cruz reminds investors of the upcoming January 3, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Polished.com Inc. f/k/a 1847 Goedeker Inc. (“Polished” or the “Company”) (NYSE: POL) securities: (a) pursuant and/or traceable to the registration statement and related prospectus issued in connection with the Company’s 2020 initial public offering (the “IPO” or “Offering”); and/or (b) between July 27, 2020 and August 25, 2022, inclusive (the “Class Period”).
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On or about July 27, 2020, the Company completed its IPO, issuing approximately 1,111,200 shares at $9.00 per share.
On March 29, 2021, after the market closed, Polished revealed that its financial statements for fiscal 2019 and periodic reports during fiscal 2020 should no longer be relied upon due to a recent U.S. Supreme Court decision regarding sales taxes for online sellers. On this news, the Company’s stock price fell $0.37, or 4%, to close at $8.63 per share on March 30, 2021.
Then, on August 15, 2022, after the market had closed, Polished disclosed that it is unable to timely file its second quarter 2022 report due to an ongoing investigation regarding “certain allegations made by certain former employees related to the Company’s business operations.” On this news, the Company’s stock fell $0.54, or 35.8%, to close at $0.97 per share on August 16, 2022, thereby injuring investors.
Then, on August 25, 2022, after market hours, the Company announces that it was no longer in compliance with NYSE American rules due to its failure to timely file its quarterly report and that it was given an extension to regain compliance. On this news, the Company’s stock fell $0.06, or 7.5%, to close at $0.74 per share on August 26, 2022, thereby injuring investors further.
Then, on October 14, 2022, Polished announced that its Chief Executive Office and President, its Chief Operating Officer, and its Chief Financial Officer and Secretary had all resigned, effective immediately. On this news, the Company’s stock fell $0.037, or 7.5%, to close at $0.458 per share on October 17, 2022, thereby injuring investors further.
On October 26, 2022, the Company’s share price closed at $0.55 per share, representing a 93.9% decline from the IPO price of $9.00 per share.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company would restate certain financials; (2) the Company’s internal controls were inadequate; (3) the Company downplayed and obfuscated its internal controls issues; (4) the Company did not properly construct or remediate its inadequate and ineffective internal controls; (5) contrary to the Company’s statements, the Company was not remediating its internal controls; (6) as a result, the Company would engage in an independent investigation; (7) as a result of the investigation, the Company would, among other things, retain independent counsel and consultants, and delay its quarterly filings in violation of NYSE requirements of listing; (8) following the commencement of the investigation, the Company’s CEO and CFO would leave the Company; and (9) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Polished securities during the Class Period, you may move the Court no later than January 3, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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