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Aterian, Inc. (NASDAQ: MWK) Investor Securities Class Action Lawsuit 05/13/2021

  • If you purchased a significant amount of shares of Aterian, Inc. (NASDAQ: MWK) between December 1, 2020 and May 3, 2021, and / or if you purchased any NASDAQ: MWK shares prior to December 2020 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: July 12, 2021. NASDAQ: MWK investors should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Aterian, Inc.
Security
NASDAQ: MWK

Case Name
Aterian, Inc. Shareholder Class Action Lawsuit 05/13/2021
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Southern District of New York

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Summary

May 13, 2021 - An investor in shares of Aterian, Inc. (NASDAQ: MWK) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Aterian, Inc. f/k/a Mohawk Group Holdings, Inc. in connection with certain allegedly false and misleading statements made between December 1, 2020 and May 3, 2021.

Aterian, Inc. reported that its annual Total Revenue rose from $114.45 million in 2019 to $185.7 million in 2020, and that its Net Loss increased from $58.78 million in 2019 to $63.12 million in 2020.

On May 4, 2021, Culper Research published a report titled "Aterian (ATER): Bought from Felons & Fraudsters, Sold to You," alleging that Aterian has "ties to convicted criminals" and is "promoting what we believe is an overhyped ‘AI’ narrative and a string of garbage acquisitions to mask the failure of its already ill-conceived core business." Culper also alleges that "[o]ver 25% of Aterian shares now belong to two felons and two alleged scam artists, all of whom will be free to dump their stock by August." Aterian, Inc. (NASDAQ: MWK) declined from $25.70 per share on April 26, 2021, to as low as $14.27 per share on May 6, 2021.

According to the complaint the plaintiff alleges on behalf of purchasers of Aterian, Inc. (NASDAQ: MWK) common shares between December 1, 2020 and May 3, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 1, 2020 and May 3, 2021, the defendants failed to disclose to investors that the Company’s organic growth is plummeting, that the Company’s recent, self-lauded acquisitions were overpayments for flawed assets from questionable sources, that Aterian’s purported artificial intelligence software is a flawed product that lacks customer interest, that Aterian uses rebate programs and paid or artificial reviews to pump up their product offerings, and that as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.