Cannabis Marketplace Stock Goes Up In Smoke Following SEC Litigation

WM Technologies gave investors a high when the Company published overly rosy numbers on the Company’s financial reports.  But those figures went up in smoke after the SEC announced an investigation of the cannabis company’s fraudulent financials.  Angry investors quickly dumped their shares, causing the stock to tumble.  Those investors have now filed a class-action lawsuit against the Company in hopes of recovering some of their “green.”

WM is an online cannabis marketplace.  In its quarterly SEC reports, WM includes metrics for its monthly active users and paying clients.   Between 2021 and 2022, the Company’s quarterly reports showed it regularly increased those key figures.  But, according to the lawsuit, WM’s executives should have known those numbers were fraudulent and the result of misleading and deceptive accounting practices. 

The truth came to light in 2022 when the Company filed an SEC report revealing that an internal whistleblower had called out WM’s bogus method for counting active users and clients.  Then, in 2024 the SEC filed litigation against the company and its executives, based in part on those allegations.

Investors quickly sold off their shares after learning this news, causing WM’s share price to plummet.  Some of those investors are now signing up for the class action lawsuit.

Join the Lawsuit.