ESS Tech, Inc.
|Company Name||ESS Tech, Inc.|
|Class Period||August 11, 2022 to December 07, 2022|
|Lead Plaintiff Motion Deadline||March 13, 2023|
On December 7, 2022, Grizzly Research published a report which alleged, among other things, that ESS’s largest partner, Energy Storage Industries Asia Pacific (“ESI”), is a related party with no real staff, office, or any relevant ongoing business activity. Furthermore, the report claimed that the Company concealed the fact that ESI was a de-facto subsidiary, not a true third party.
On this news, ESS’s stock price fell $0.22, or 7.7%, to close at $2.64 per share on December 7, 2022, thereby injuring investors.
The complaint filed in this class action 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 purported agreement with ESI was in fact an undisclosed related party transaction because ESI was a de-facto subsidiary of ESS masquerading as third-party client; (2) ESS misled investors with their partnership announcement to signal business success to investors; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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