Meta Materials to pay $1M fine to end SEC market manipulation, fraud claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
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- Meta Materials (NASDAQ: MMAT) stock dropped by 4.8% in Tuesday's trading following an agreement to pay a $1M fine to settle claims by the Securities and Exchange Commission against the company and former CEOs John Brda and George Palikaras.
- The settlement was reached in an administrative proceeding, while the SEC's litigation against Brda and Palikaras will continue in federal district court.
- The SEC's complaint alleges that Meta Materials raised $137.5M from investors through market manipulation before the merger of Torchlight Energy Resources and Metamaterial Inc. that formed Meta Materials.
- Brda and Palikaras are accused of planning and executing a manipulative scheme involving issuing a preferred stock dividend to artificially raise the company's stock price.
- Meta Materials announced last October that Jim Fusaro replaced Palikaras as President and CEO.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
