Aterian, Inc. Image
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Aterian, Inc.

Class Action
  • Settled
Investigation
05/04/2021
Initial Lawsuit
05/13/2021
Lawsuit Progression
08/10/2021
Settlement
05/04/2022

Investigation

Investigation in connection with Aterian’s (formerly Mohawk Group Holdings, Inc.) recent acquisitions, ‘AIMEE’ platform and allegations of ties to “convicted criminals.”

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

  • Investigation Date
    05/04/2021
  • Hypothetical Affected Period
    December 1, 2020 to May 3, 2021
  • Hypothetical Transgression
    Securities Violation
Main Event

Short Attack

05/04/2021

Research Report (Short)

Culper Research publishes a ‘short’ report alleging that the company’s organic growth is plummeting, the company has ties to “convicted criminals” and is promoting a “overhyped ‘AI’ narrative a string of garbage acquisitions to mask the failure of its already ill-conceived core business.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$17.62 $20.66 $-3.04 -14.71%
See more on Factual Timeline

Initial Lawsuit

This is a federal securities class action on behalf of all investors who purchased orotherwise acquired Aterian, Inc. (formerly known as Mohawk Group Holdings, Inc.) securities between December 1, 2020 and May 3, 2021, inclusive.

  • Filing Date
    05/13/2021
  • Class Period
    12/01/2020 to 05/03/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Block & Leviton, LLP
  • Case Title
    Tate v. Aterian, Inc.
  • Docket Number
    1:21-cv-04323
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the company’s organic growth is plummeting;
(ii) the company’s recent, self-lauded acquisitions were overpayments for flawed assets from questionable sources;
(iii) Aterian’s purported artificial intelligence software is a flawed product that lacks customer interest;
(iv) Aterian uses rebate programs and paid or artificial reviews to pump up their product offerings;
(v) as a result, the company’s public statements were materially false and misleading at all relevant times.

Defendants

  • Company
    Aterian, Inc. fka Mohawk Group Holdings, Inc.
  • President
    Yaniv Sarig
  • Chief Financial Officer
    Fabrice Hamaide

Lawsuit progression

  • Docket Number
    1:21-cv-04323
  • Court
    New York Southern District Court

Lead Counsel

08/10/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Third Amended Complaint

01/05/2022

This is a federal securities class action on behalf of a class consisting of all persons other than defendants who purchased the common stock of Aterian, Inc. between December 1, 2020 and May 3, 3021, both dates inclusive. *See notice of settlement of extension to 8/24/2020.

Settlement

Announce

On 05/04/2022, lead counsel The Rosen Law Firm, P.A. announced a proposed class action settlement.

Preliminary Approval

The court preliminarily approved the settlement on 05/05/2022. The settlement has a total value of $1,300,000 in Cash.

Am I included?

The notice states that you may be included, if you purchased or otherwise acquired the company’s publicly traded common stock during the period from 08/24/2020 to 05/03/2021, inclusive.

What is the estimated recovery?

According to the notice, the estimated average cash recovery per damaged share of common stock will be approximately $0.36 per share, before deduction of court-approved fees and expenses. Lead Counsel filed a motion for an award of attorneys’ fees not to exceed 33% of the $1,300,000 and payment of expenses not to exceed $40,000.

How can I file a claim?

For information purposes only, last updated on 06/08/2022. Contact the claims administrator or lead counsel for further information.

Source

Factual Timeline

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