Class Action Lawsuits Target WM Technology and Humacyte
New York, Sunday, 8 December 2024.
WM Technology and Humacyte face class action lawsuits for alleged securities fraud, impacting investor confidence and potentially altering their market positions.
WM Technology’s SEC Settlement and Legal Challenges
WM Technology, Inc. (NASDAQ: MAPS) is currently facing multiple class action lawsuits following SEC charges related to misrepresented user metrics [1][5]. On September 25, 2024, the SEC charged the company, former CEO Christopher Beals, and former CFO Arden Lee for making negligent misrepresentations about their monthly active user (MAU) metrics in public reporting [5]. The company has agreed to pay a civil penalty of 1.500 million [5]. The allegations span from May 25, 2021, to September 24, 2024, during which the company allegedly inflated its MAU numbers, leading to a 1.9 percent stock drop when the information became public [5].
Humacyte’s Regulatory Compliance Issues
Simultaneously, Humacyte, Inc. (NASDAQ: HUMA) is facing its own class action lawsuit filed on December 8, 2024 [2]. The lawsuit alleges that between May 10, 2024, and October 17, 2024, the company failed to disclose critical compliance issues at its Durham, North Carolina facility [2]. These undisclosed deficiencies have reportedly caused delays in the FDA’s review of their Biologics License Application (BLA) and created significant risks regarding FDA approval of their ATEV product for vascular trauma [2].
Legal Proceedings and Investor Options
For WM Technology investors who suffered losses exceeding $75,000, multiple law firms are actively seeking lead plaintiffs before the December 16, 2024 deadline [5]. The class action lawsuit seeks to recover damages for investors affected during the specified period [3]. Similarly, Humacyte investors have until January 4, 2025, to request appointment as lead plaintiff in their respective case [2]. Both cases are being handled by nationally recognized law firms with track records of recovering substantial settlements for investors [1][2].
Impact and Next Steps
These legal developments represent significant challenges for both companies, with potential long-term implications for their market positions [GPT]. Investors are encouraged to seek legal counsel to understand their rights and potential recovery options [1][2][3]. The cases highlight the increasing scrutiny of public companies’ reporting practices and the importance of accurate disclosure in maintaining investor trust [GPT].