Schwab, TD Ameritrade & Fidelity Sued for Selling 'Fictious' Shares

See: Schwab, TD Ameritrade Hit With Class Action Lawsuit Over MOVEit Hack

Mullen alleges the unlawful trading took place shortly after the company executed a 25-to-1 reverse split in May, which led to a reduction of the 3.7 billion shares outstanding to 152 million shares. The company is seeking unspecified damages as compensation.

“Companies have duties and obligations to their shareholders to monitor whether their company is being targeted and to take appropriate legal steps to protect the value of their shareholders equity,” said Alan M. Pollack, partner at Warshaw Burstein, who filed the complaint. “Mullen is one of those companies that understands its obligations and is doing something about it.”

The Brea, California-based company began trading on the Nasdaq in November 2021 after merging with a listed payments company. Since then, Mullen has acquired a number of its struggling peers, like bankrupt Electric Last Mile Solutions, Inc., and the privately-held Bollinger Motors.

–With assistance from Silla Brush.

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