Tattooed Chef, Inc.
A securities class action has been filed has been filed in the USDC – C.D.CA. against Tattooed Chef, Inc. (TTCF) on behalf of persons or entities who purchased or otherwise acquired publicly traded Tattooed Chef securities between March 20, 2021 through October 12, 2022.
On October 12, 2022, after market hours, Tattooed Chef announced that it would restate its quarterly and annual financial statements for 2021, and for its first and second quarterly financial periods of 2022. Tattooed Chef stated these financial statements should no longer be relied upon.
Tattooed Chef stated the restatements are because it was notified earlier this month by its former independent registered public accounting firm, BDO USA LLP, that “the company incorrectly recorded expenses related to a multi-vendor mailer program with a large customer as operating expenses rather than reduction of revenue, and expenses for advertising placement by a marketing services firm on a straight-line basis over the life of the contract rather than when the services were actually rendered.”
On this news, Tattooed Chef’s share price fell $0.44 per share, or approximately 9.8%, from its close on October 12, 2022 to open on October 13, 2022 at $4.05 per share.
According to the Complaint, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, that:
- Tattooed Chef continuously downplayed its serious issues with internal controls;
- Tattooed Chef’s financial statements from March 31, 2021 to the present included “certain errors” such as overstating revenue and understating losses;
- as a result, Tattooed Chef would need to restate its previously filed financial statements for certain periods; and
- 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.
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