San Diego, CA -- (SBWIRE) -- 06/08/2022 -- An investor, who purchased shares of LMP Automotive Holdings, Inc. (NASDAQ: LMPX), filed a lawsuit against LMP Automotive Holdings, Inc over alleged violations of Federal Securities Laws.

Investors who purchased shares of LMP Automotive Holdings, Inc. (NASDAQ: LMPX) have certain options and for certain investors are short and strict deadlines running. Deadline: July 26, 2022. NASDAQ: LMPX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Fort Lauderdale, FL based LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. On November 16, 2021, after the market closed, LMP Automotive Holdings, Inc. filed a notification of inability to timely file its quarterly report for third quarter 2021. LMP Automotive Holdings, Inc. said that it identified several material weaknesses in its internal control over financial reporting, including that "[t]he Company did not maintain a formalized set of accounting policies" and "[t]he Company did not maintain effective controls over the review and approval of journal entries, account reconciliations, review of significant accounts and disclosures, and adequate documentation of management assumptions, estimates and judgments."

On March 31, 2022, LMP Automotive Holdings, Inc. disclosed that it could not timely file its fiscal 2021 annual report "primarily [as] a result of its ongoing evaluation of (i) the proper identification and elimination of intercompany transactions, (ii) estimates of chargeback reserves for finance and insurance products and (iii) various financial presentation matters related to the Company's business, including as it relates to the presentation, characterization and amounts of such items in prior fiscal quarters."

On May 17, 2022, LMP Automotive Holdings, Inc. disclosed that it could not timely file its Q1 2021 quarterly report due to the previously announced ongoing evaluation. LMP further disclosed that due to errors in the Company's quarterly reports during fiscal year 2021, such reports "will likely need to be restated." The Company also disclosed that these errors may impact "certain previously disclosed material weaknesses in the registrant's controls over financial reporting."

Then, on May 19, 2022, LMP Automotive Holdings, Inc. revealed that it would restate the financial statements for quarterly periods in fiscal 2021 "primarily due to the following errors: (i) the improper identification and elimination of intercompany transactions, (ii) incorrect estimates of chargeback reserves for finance and insurance products, and (iii) certain financial statement misclassifications impacting various balance sheet and income statement financial statement captions in the Relevant Periods." These results caused a decrease in total revenues up to $15 million for third quarter 2021, up to $8 million for second quarter 2021, and up to $1 million for first quarter 2021. As a result, the Company stated that "material weaknesses exist in the Company's internal control over financial reporting and that the Company's disclosure controls and procedures were not effective."

Shares of LMP Automotive Holdings, Inc. (NASDAQ: LMPX) declined from $20.50 per share on August 11, 2021, to as low as $3.81 per share on May 25, 2022.

The plaintiff claims that between June 29, 2021 and May 19, 2022, the Defendants failed to disclose to investors that: investors that the Company engaged in the improper identification and elimination of intercompany transactions, that the Company used incorrect estimates for chargeback reserves for finance and insurance products, that the Company had misclassified certain items in its financial statements which impacting balance sheet and income statement financial statement captions, that there were material weaknesses in LMP's internal control over financial reporting, that, as a result of the foregoing, the Company overstated its revenue, that, as a result of the foregoing, the Company would restate certain of its previously issued financial statements and results, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of LMP Automotive Holdings, Inc. (NASDAQ: LMPX) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels

3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.