Humbl LLC

On May 20, 2021, Hindenburg Research published a research report which alleged, among other things, that basic features of Humbl’s Pay App were not functioning, and that there was no way to send, receive, and request money between users. Furthermore, the report also stated that many merchants using the Humbl marketplace were not actually using Humbl.

On this news, Humbl’s stock fell $0.22, or 22.4%, to close at $0.76 on May 20, 2022, thereby injuring investors.

Then, on February 14, 2022, Humbl announced that it was suspending its Exchange Traded Index (“ETX”) subscription program.

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: (1) that the HUMBL Pay App did not have even the basic functionality that it promised investors; and (2) that several of its hyped international business partnerships had a very low chance of contributing material revenues to the Company’s bottom line; and (3) 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.