Alliance MMA, the organization touting itself as “the only mixed martial arts promotion company that is publicly-traded” with industry-name directors Renzo Gracie and Burt Watson, was sued for securities law violations in a class-action lawsuit filed in New Jersey Federal Court today. CEO Paul Danner and CFO John Price are also listed as defendants.
Alliance went public on the NASDAQ stock exchange on Oct. 6, 2016 with an IPO offering price of $4.50 per share. As of this writing, Alliance was trading at $2.12, a 53% decline in value.
Last Wednesday, Alliance filed an 8-K with the Securities and Exchange Commission (SEC) stating that certain prior financial statements “should no longer be relied upon because of an error in recognizing as compensation transfers of common stock by an affiliate of the Company to individuals who were at the time of transfer, or subsequently became, officers, directors or consultants of the Company.