BOSTON, MA / ACCESSWIRE / October 27, 2020 / Wrap Technologies, Inc. (NASDAQ:WRTC) purportedly develops security products designed for use by law enforcement and security personnel. In December 2019, Wrap announced that the Los Angeles Police Department had decided to train its officers on Wrap's "BolaWrap 100," a handheld remote restraint device.
On September 23, 2020, analyst White Diamond Research stunned the market with its report entitled "Wrap Technologies: Disastrous LAPD BolaWrap Pilot Program Results, No Evidence These Have Been Communicated to Investors." This report described an August 25, 2020 LAPD analysis, which White Diamond described as revealing that "[o]ver a six-month period, 200 BolaWrap devices in the hands of 1,100 LAPD officers in the field were used only nine times, and only worked once." On this news, shares of Wrap Technologies common stock fell by over 25% in one day, from their September 22, 2020 close of $8.14 per share to a September 23, 2020 close of $6.07.
A lawsuit alleging violations of federal securities laws has been filed against Wrap Technologies and certain of its officers and directors. The suit alleges that beginning on July 31, 2019, Wrap Technologies misled investors about the purported success of the LAPD trial of the BolaWrap, including that the LAPD officers had provided "great feedback" on their "uses so far" of the BolaWrap. According to the lawsuit, the September 23, 2020 White Diamond Research report shocked the market because of the Company's previous statements touting the positive result of the LAPD's BolaWrap trial.
The lawsuit was filed in the U.S. District Court for the Central District of California, and is captioned Cobden v. Wrap Technologies, Inc., et al., No. 20-cv-08760.
If you purchased or acquired shares of Wrap Technologies between July 31, 2020 and September 23, 2020 and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at [email protected], or at https://www.blockleviton.com/cases/wrap. The deadline to move the Court to be appointed lead plaintiff is November 23, 2020.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.
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SOURCE: Block & Leviton LLP