LMP Automotive Holdings: Investor Lawsuits
Are you concerned about your investment in LMP Automotive Holdings, Inc. (LMPX)? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through a FINRA arbitration claim or by participating in a class action lawsuit.
About LMP Automotive Holdings
LMP Automotive Holdings, Inc., once billed as a cutting-edge e-commerce platform for buying and leasing vehicles, went public in December 2019. The company was based in Plantation, Florida, and traded under the ticker symbol LMPX.
Despite its ambitions to disrupt the traditional auto dealership model, LMP Automotive encountered serious financial difficulties, leading to a restatement of prior earnings and ultimately a liquidation of its assets.
Securities Fraud Allegations
LMP Automotive Holdings has been the subject of multiple shareholder class action lawsuits. These claims allege that the company misrepresented or failed to disclose material information related to its accounting practices and internal controls. Specific allegations include:
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Improper elimination of intercompany transactions
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Errors in estimating reserves for finance and insurance (F&I) products
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Misclassifications in financial reporting
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Inadequate internal controls over financial reporting
These alleged failures led to a restatement of previously issued financial statements and a substantial decline in LMPX’s share price.
Recovering Investment Losses in LMPX
If your financial advisor recommended LMPX stock without adequately disclosing the associated risks—or if the recommendation was unsuitable based on your investor profile—you may have a viable claim for damages.
FINRA arbitration provides a private forum for resolving disputes between investors and their brokerage firms. Even if a class action is already underway, pursuing an individual claim through FINRA arbitration may result in a faster and potentially larger recovery.
Free Case Evaluation
The White Law Group is a national law firm with experience representing investors in claims against brokerage firms for unsuitably recommended securities and fraudulent investment products.
If you are concerned about your investment in LMP Automotive Holdings, please call us at 888-637-5510 for a free consultation.
To learn more about our practice, visit www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQ)
1. What is the difference between a class action and FINRA arbitration?
A class action lawsuit involves a group of investors collectively suing a company, typically for securities fraud. If successful, damages are divided among the class members—often resulting in smaller payouts per individual.
In contrast, FINRA arbitration is an individualized process between you and your brokerage firm or advisor. It can potentially result in a higher recovery, especially if the investment was recommended inappropriately or without proper due diligence.
2. Can I file a FINRA arbitration claim if I already joined a class action?
Yes, in some cases you may opt out of the class action and pursue an individual claim through FINRA arbitration. It’s best to consult with a securities attorney to determine the best course of action based on your specific circumstances.
3. How long do I have to file a claim for investment losses in LMP Automotive Holdings?
There are statutes of limitations for both class actions and FINRA arbitration claims. In FINRA arbitration, investors generally must file within six years of the date of the alleged misconduct. However, it’s important to act quickly to preserve your rights.
