Metals recycler Aqua Metals has been hit with a $7 million settlement after a US court found it misled investors between 2016-17 regarding its lead-acid battery recycling refining process.
Aqua Metals artificially inflated its stock price by misleading investors about the viability and profitability of its lead-acid battery recycling technology— and when the truth about the technology was revealed, Aqua Metals’ stock price plummeted in a series of one-day drops.
The settlement includes $6.5 million in cash— funded via the company’s D&O insurance carriers — and gives Aqua Metals the option of paying the remaining $500,000 in common stock or cash.
The case was heard by the U.S. District Court for the Northern District of California (The Court).
Investors brought the securities class action lawsuit against Aqua Metals and some of its officers and directors in December 2017.
Plaintiffs represented themselves and investors who purchased, or otherwise acquired, common stock of Aqua Metals sold between 19 May, 2016 and 9 November, 2017.
Aqua Metals will make a $7 million non-reversionary payment into a Settlement Fund, which will consist of $6.5 million in cash to be funded by its D&O insurance carriers and $500, 000 in either its common stock or cash, at Aqua Metals’ sole option.
A third-party settlement administrator will determine each authorised claimant’s share of the Net Settlement Fund based upon the recognised loss formula (Recognised Loss).
Each authorised claimant’s Recognised Loss calculation depends on several factors, including when they purchased or otherwise acquired Aqua Metals securities during the Settlement Class Period and in what amounts, and whether such securities were sold and, if sold, when and for what amounts.
Aqua Metals had not replied to BEST regarding the judgment at the time of publication.
