SAN DIEGO--(BUSINESS WIRE)--#TMCcase--Robbins Geller Rudman & Dowd LLP announces that purchasers of TMC the metals company Inc. f/k/a Sustainable Opportunities Acquisition Corp. (NASDAQ: TMC) publicly traded securities between March 4, 2021 and October 5, 2021, inclusive (the “Class Period”) have until December 27, 2021 to seek appointment as lead plaintiff in Carper v. TMC the metals company Inc. f/k/a Sustainable Opportunities Acquisition Corp., No. 21-cv-5991 (E.D.N.Y.). Commenced on October 28, 2021, the TMC class action lawsuit charges TMC and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff of the TMC class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the TMC class action lawsuit must be filed with the court no later than December 27, 2021.
CASE ALLEGATIONS: TMC is a Canadian deep-sea minerals exploration company focused on the collection, processing, and refining of polymetallic nodules found on the seafloor of the Clarion Clipperton Zone of the Pacific Ocean (the “CCZ”). Deep sea exploration rights are regulated by the International Seabed Authority (“ISA”). TMC’s primary assets are three exploration licenses granted by the ISA. These licenses, which are held via three subsidiaries, are: (i) Nauru Ocean Resources Inc. (“NORI”); (ii) Marawa Research and Exploration Limited (“Marawa”); and (iii) Tongo Offshore Mining Limited (“TOML”).
On March 4, 2021, DeepGreen Inc. announced that it had entered into a business combination agreement with Sustainable Opportunities Acquisition Corporation (“SOAC”), a special purpose acquisition company (“SPAC”) with a dedicated Environmental, Social, and Governance (“ESG”) focus. Upon closing of the merger, the combined company was renamed TMC the metals company Inc. The combined company, TMC, began trading on the NASDAQ under the ticker symbol “TMC” on September 10, 2021.
The TMC class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) TMC had significantly overpaid for the TOML acquisition to undisclosed insiders; (ii) TMC had artificially inflated its NORI exploration expenditures to give investors a false scale of its operations; (iii) TMC’s purported 100% interest in NORI was questionable given prior disclosures to the ISA that NORI was wholly owned by two Nauruan foundations and that all future income from NORI would be used in Nauru; (iv) defendants had significantly downplayed the environmental risks of deep-sea mining polymetallic nodules and failed to adequately warn investors of the regulatory risks faced by TMC’s environmentally risky exploitation plans; (v) TMC’s private investment in public equity (“PIPE”) financing was not fully committed and, therefore, TMC would not have the cash necessary for large sale commercial production; (vi) as a result of the foregoing, TMC’s valuation was significantly less than defendants disclosed to investors; and (vii) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On September 13, 2021, Bloomberg published an article revealing that two investors had failed to provide $330 million as part of the PIPE component of TMC’s go-public deal. The article also questioned TMC’s “green credentials,” revealing that “[e]nvironmentalists claim that TMC’s activities will damage sensitive ecosystems and destroy vital biodiversity” and that “[s]ince the SPAC deal was announced in March, more than 500 scientists have signed a letter calling for a moratorium on deep-sea mining until the environmental risks are better understood.” On this news, TMC’s share price fell by more than 20% over the next two trading days.
Then, on October 6, 2021, market research firm Bonitas Research released a report detailing multiple issues plaguing TMC, including that: (i) TMC had overpaid on licenses to potential undisclosed insiders; (ii) TMC had artificially inflated exploration expenses by more than 100% to mislead investors about the scale of its operations; (iii) there are reasons to question TMC’s ownership claim of NORI; and (iv) TMC’s history of affiliating with bad actors. On this news, TMC’s share price fell by more than 7%, further damaging investors.
Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased TMC securities during the Class Period to seek appointment as lead plaintiff in the TMC class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the TMC class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the TMC class action lawsuit. An investor’s ability to share in any potential future recovery of the TMC class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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Contacts
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
jsanchez@rgrdlaw.com
