The parties in the Alliance MMA lawsuit have filed a Notice of Settlement filed in the class action lawsuit filed in federal court in New Jersey.
The lawsuit was premised upon an accounting irregularity in Alliance MMA’s 10-Q filings in 2016 could no longer be relied upon. As a result, two lawsuits were filed against the company with one being dismissed in order for the other to be the lead case in the litigation.
Alliance MMA became the first publicly traded MMA organization on the NASDAQ. Since it began trading publicly, the company’s stock has been down since. As of Friday, March 9th the stock closed in trading at just $0.52.
Alliance MMA denied any financial impact as a result of the error and brought a motion to dismiss in the lawsuit. The parties determined to settle the case prior to plaintiffs filing an opposition.
The notice allows for a stay on a deadlines in the case while the parties finalize a settlement. A settlement and dismissal of the case must occur by April 9th according to the below filing.
Notice of Settlement by JASONCRUZ206 on Scribd
Payout Perspective:
The settlement is probably the best for both parties as the plaintiffs likely received compensation while Alliance MMA cut off the legal fee spigot. We shall see what impact, if any, it has on the operations of Alliance MMA. The company made changes in its C-suite and named a new president this past February.
Leave a Reply