SEC fines Former Weedmaps executives $175k apiece for ‘misleading’ user numbers | How to order Skittles Moonrock online

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The former chief financial officer and chief executive officer of WM Technology, the parent company of the popular cannabis dispensary search site Weedmaps (Nasdaq : MAPS), each agreed to pay $175,000 to settle allegations that they issued “misleading user number metrics” while running the business. This was essentially a lie to investors and regulators regarding how successful the website had been once it went public.

According to a Press release The U.S. Securities and Exchange Commission announced on Wednesday that former CEO Chris Beals and CFO Arden Le agreed to pay civil penalties, without admitting any guilt for the alleged violations. They also agreed to a three-year ban on serving as corporate officers of any public company.

The SEC has announced that the company is no longer listed on the SEC The fine was $1.5 million To settle the same allegations.

In its announcement, the SEC stated that Beals and Lee both committed a mistake when they signed off corporate documents for Weedmaps, which included “negligently misrepresenting WM Technology’s public reporting on a self-described important operating metric,’monthly users’ or ‘MAU’ for WM Technology’s online cannabis marketplace.”

The SEC stated that for more than a full year, starting in May 2021 shortly after Weedmaps was listed on the Nasdaq stock exchange, Beals and Lee approved earnings filings to the SEC, and used MAU statistics in earnings calls in order to paint a rosier image of Weedmaps than what the actual numbers justified.

The company, along with Beals & Lee, relied on faulty MAU figures, due to popup ads on third party websites that redirected many customers to Weedmaps. Weedmaps then included these MAU statistics in its MAU statistics to prove to the SEC & investors that their website was much more popular.

In its release, the SEC stated that “these purportedly active’ users didn’t volitionally seek out WM Technology’s site and, in most cases, they didn’t click on any links or engage measurable activity on the WM Technology’s site.” However, the actual numbers of users “were stagnant, or declining.”

The SEC claimed that Beals and Lee knew about the flawed metrics but “failed to follow up and negligently signed WM Technology’s SEC submissions and made public statements” based upon the faulty MAU figures, it said.

In mid-2022, an “internal” complaint revealed the flawed reliance of MAU statistics. The company launched an investigation that led to an SEC investigationBeals and Lee was fined for their actions.

Beals Stepped down In November 2022, a few short months after the SEC started its investigation and the complaint was made public, Lee resigned from Weedmaps. Lee resigned from Weedmaps in July 2023.

Weedmaps was listed on the Nasdaq market in April 2021. However, its financial situation quickly deteriorated and its user base continued to decline. According to the report, Weedmaps reported MAU numbers in August 2022 were largely attributed to questionable pop-ups that consumers encountered online. SEC case against WM Technology.

Weedmaps had a net income of 152.2 million dollars in 2021. However, the company lost $82.7 million in the following year. Then it lost another $15.7 in 2023. The company has seen a slight recovery in recent quarters. Net income of $3.2 million for the year Total for the first six-month period of 2024.