Alliance MMA, Inc.

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Case Summary

Company Name
Alliance MMA, Inc.
Stock Symbol
AMMA
Class Period
Purchasers of Alliance MMA publicly traded securities pursuant to October 6, 2016 initial public offering
Motion Deadline
June 16, 2017

The complaint charges Alliance MMA and certain of its officers with violations of the Securities Act of 1933.  Alliance MMA is focused on MMA (mixed martial arts) promotional activities.  Alliance MMA was formed in 2015 to acquire companies in the MMA industry, and as of September 30 2016 had acquired the assets and assumed certain liabilities of six companies.

On or about October 6, 2016, Alliance MMA completed its initial public offering (“IPO”) of 3.3 million Alliance MMA shares at $4.50 per share for net proceeds of approximately $14.99 million.  The Registration Statement issued in connection with the IPO included the Company’s financial statements for the six months ended June 30, 2016.

The complaint alleges that defendants made false and misleading statements and/or failed to disclose adverse information regarding Alliance MMA’s business and financial results in the Registration Statement issued in connection with its IPO, including that the condensed consolidated financial statements for the three and six months ended June 30, 2016 contained therein could not be relied upon because of an error in recognizing as compensation transfers of common stock by an affiliate of Alliance MMA to individuals who were at the time of transfer, or who subsequently became, officers, directors or consultants of Alliance MMA. 

On April 12, 2017, the Company filed a Form 8-K after the market closed revealing that its previously issued condensed consolidated financial statements for the three and six months ended June 30, 2016 should no longer be relied upon because of an error in recognizing as compensation transfers of common stock by an affiliate of Alliance MMA to individuals who were at the time of transfer, or who subsequently became, officers, directors or consultants of Alliance MMA.  On this news, the price of Alliance MMA shares fell 26% to an intra-day low of $1.87 per share before closing at $2.24 per share on April 13, 2017.  The price of the Company’s shares continued to decline in the following days, falling to $1.40 per share on April 25, 2017, a 68% decline from the IPO price.