Triterras, Inc. Class Action Lawsuit
- Company Name
- Triterras, Inc.
- Stock Symbol
- TRIT; TRITW
- Class Period
- August 20, 2020 to December 16, 2020
- Southern District of New York
The Triterras, Inc. class action lawsuit charges Triterras, Inc. f/k/a Netfin Acquisition Corp. and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Triterras securities between August 20, 2020 and December 16, 2020, inclusive (the “Class Period”). The Triterras class action lawsuit was commenced on December 21, 2020 in the Southern District of New York and is captioned Ferraiori v. Triterras, Inc., No. 20-cv-10795.
Triterras is a fintech company focused on trade and trade finance. Triterras operates Kratos, a commodity trading and trade finance platform that connects commodity traders to trade and source capital from lenders directly online.
Rhodium Resources Pte. Ltd. (“Rhodium”) is a commodity trading business headquartered in Singapore. It is controlled by Srinivas Koneru, Triterras’s Chief Executive Officer. Rhodium enabled the launch of the Kratos platform and substantially all of Triterras’s users were referred to it by Rhodium. As a result, the two entities have entered into an origination agreement to incentivize Rhodium to continue to refer its commodity trading customers to Kratos in exchange for fixed payments to Rhodium at the time a referred customer meets total transaction volume requirements for a given period.
The Triterras class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) the extent to which Triterras’s revenue growth relied on Triterras’s relationship with Rhodium to refer users to the Kratos platform; (2) that Rhodium faced significant financial liabilities that jeopardized its ability to continue as a going concern; (3) that, as a result, Rhodium was likely to refer fewer users to Triterras’s Kratos platform; and (4) that, as a result of the foregoing, defendants’ positive statements about Triterras’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On December 17, 2020, Triterras stated that Rhodium was seeking a moratorium to shield itself from creditor actions while it planned a restructuring of its debts and continue its business as a going concern. On this news, Triterras’s share price fell approximately 31% while Triterras’s warrant price fell approximately 35%.
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