Alliance MMA retains law firm to defend itself against investor lawsuit

April 21, 2017

Alliance MMA has announced that it has retained the law firm of King & Spalding to defend the company against a lawsuit filed against it on Monday.  The announcement was made via company press release.

Via Alliance MMA press release:

NEW YORK, NY – April 21, 2017Alliance MMA, Inc. (“Alliance MMA” or the “Company”) (NASDAQ: AMMA), a professional mixed martial arts (MMA) company, announced today that a shareholder has filed a lawsuit against the Company and two of its current officers in the United States District Court for the District of New Jersey, under the caption Shapiro v. Alliance MMA, Inc., No. 1:17-cv-2583 (D.N.J.). The lawsuit alleges violations of the federal securities laws and purports to seek damages on behalf of a class of all shareholders who purchased the Company’s common stock pursuant or traceable to the Company’s initial public offering. The Company believes that the lawsuit is without merit and intends to vigorously defend against it.  “Securities claims like this are often pursued by opportunistic lawyers when there is a drop in stock price,” stated CEO Paul K. Danner, III.  “The law firm of King & Spalding LLP has been engaged to help us fight back, and we plan to file a motion to dismiss this lawsuit.”

 Danner provided a comment to MMA Payout on the lawsuit earlier this week.

Below is a copy of the lawsuit.

Alliance MMA lawsuit by JASONCRUZ206 on Scribd

Payout Perspective:

Rarely do we get the legal strategy of a party but it’s clear that Alliance MMA believes there is no merit in this lawsuit and will seek a dismissal.  The company believes that attorneys are driving the lawsuit.  There are law firms out there that do seek out companies where there is a drop in stock price or issues in financial reporting.  Notably, Alliance MMA traded at a 52 week low earlier this week after the lawsuit was announced.  The lawsuit occurred after an 8-K was issued prior to its annual 10-K report.  MMA Payout will keep you updated.

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