According to Odaily, Meta Materials and its former CEOs, John Brda and George Palikaras, are facing a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC accuses them of alleged market manipulation, fraud, and other illegal activities.
The SEC alleges that Brda and Palikaras orchestrated a manipulation scheme, which included issuing preferred stock dividends immediately before a merger. They are also accused of distorting the fact that the company sold oil and gas assets and distributed the proceeds to preferred stock shareholders, giving investors a false impression of the value of the dividends.
The SEC's complaint also charges Brda and Palikaras with violating federal securities laws' anti-fraud and proxy disclosure provisions. The SEC seeks a permanent injunction against the two defendants, a ban on executive and director duties, and civil penalties. The SEC also demands that Brda disgorge prejudgment interest.