TMC the Metals Company Under Investigation for Possible Securities Law Violations

Law Firm Probes Financial Reporting Issues

The Law Offices of Frank R. Cruz has launched an investigation into TMC the metals company Inc. (“TMC” or the “Company”) TMC on behalf of investors over potential violations of federal securities laws.

Shareholders Encouraged to Act

If you are a shareholder who incurred losses, you are urged to participate in the investigation.

Financial Restatement Announced

On March 25, 2024, TMC revealed that its financial statements for the first three quarters of 2023 should no longer be deemed reliable. This requires restatement due to issues arising from its partnership with Low Carbon Royalties Inc. (“LCR”). The Company is reviewing whether the proceeds received from LCR should be categorized as debt or deferred income. TMC further indicated that the transaction with LCR will be recognized as an equity investment rather than a sale, impacting the classification of future revenue as a Royalty liability under accounting standards.

Stock Price Declines Following Disclosure

As a result of this announcement, TMC’s stock price dropped by $0.205, or 13.2%, closing at $1.345 per share on March 26, 2024, impacting investors negatively.

Get in Touch for More Information

If you purchased TMC securities, have information, or wish to learn more about these claims or your rights, please contact Frank R. Cruz at The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email at [email protected], or visit our website at www.frankcruzlaw.com. If contacting by email, please include your mailing address, phone number, and the number of shares purchased.

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