|Company Name||Aterian, Inc.|
|Class Period||December 01, 2020 to May 03, 2021|
|Lead Plaintiff Motion Deadline||July 12, 2021|
On May 4, 2021, Culper Research published a report titled “Aterian (ATER): Bought from Felons & Fraudsters, Sold to You,” alleging that Aterian has “ties to convicted criminals” and is “promoting what we believe is an overhyped ‘AI’ narrative and a string of garbage acquisitions to mask the failure of its already ill-conceived core business.” Culper also alleges that “[o]ver 25% of Aterian shares now belong to two felons and two alleged scam artists, all of whom will be free to dump their stock by August.” The report alleged that the Company “has been largely unsuccessful in convincing other Amazon sellers to pay for its ‘AIMEE’ AI platform, and at least 5 former employees and a former customer have expressed doubts regarding AIMEE’s legitimacy.”
On this news, Aterian’s stock price fell $4.94 per share, or 24%, over two trading sessions to close at $15.72 per share on May 5, 2021, thereby injuring investors.
The complaint filed alleges that throughout the Class Period, 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 failed to disclose to investors that: (1) the Company’s organic growth is plummeting; (2) the Company’s recent, self-lauded acquisitions were overpayments for flawed assets from questionable sources; (3) Aterian’s purported artificial intelligence software is a flawed product that lacks customer interest; (4) Aterian uses rebate programs and paid or artificial reviews to pump up their product offerings; and (5) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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