Wrap Technologies, Inc. Class Action Lawsuit
- Company Name
- Wrap Technologies, Inc.
- Stock Symbol
- Class Period
- July 31, 2020 to September 23, 2020
- Central District of California
The Wrap Technologies, Inc. class action lawsuit charges Wrap Technologies and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Wrap Technologies securities between July 31, 2020 and September 23, 2020, inclusive (the “Class Period”). The Wrap Technologies class action lawsuit was commenced on September 23, 2020 in the Central District of California and is captioned Cobden v. Wrap Technologies, Inc., No. 20-cv-08760.
Wrap Technologies develops security products for law enforcement and security personnel, including the BolaWrap 100, a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether to entangle a subject at a range of 10-25 feet. On December 3, 2019, Wrap Technologies announced that the Los Angeles Police Department (“LAPD”) had decided to train its officers on the BolaWrap and employ 200 devices in the field for a trial pilot program.
The Wrap Technologies class action lawsuit alleges that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Wrap Technologies had concealed the results of the LAPD BolaWrap pilot program, which demonstrated that the BolaWrap was ineffective, expensive, and sparingly used in the field; and (2) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On September 23, 2020, White Diamond Research published a report, entitled “Wrap Technologies: Disastrous LAPD BolaWrap Pilot Program Results, No Evidence These Have Been Communicated To Investors,” alleging, among other things, that Wrap Technologies’ trial pilot program with the LAPD was a failure and that Wrap Technologies had not disclosed the results to investors. On this news, the price of Wrap Technologies securities fell more than 25%, damaging investors.
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