Robbins LLP reminds investors that a shareholder filed a class action on behalf of investors who (1) acquired HUB Cyber Security Ltd. (NASDAQ: HUBC) securities pursuant to/or traceable to the Offering Documents issued in connection with the merger with Mount Rainier or (2) acquired Mount Rainier or HUB Cyber Security Ltd. securities between March 23, 2022 and June 13, 2023. Legacy HUB was founded in 2017 by veterans of the elite Unit 8200 and Unit 81 of the Israeli Defense Forces and described itself as having “developed unique technology and products in the field of Confidential Computing, and it intends to be a significant player providing effective cybersecurity solutions for a broad range of government entities, enterprises and organizations.”
What is this Case About: HUB Cyber Security Ltd. (HUBC) Made Misleading Statements in its Offering Documents Regarding its Business Prospects
According to the complaint, Mount Rainier was a special purpose acquisition company that merged with HUB Cyber Security (Israel) Ltd. The Company consummated the merger with Mount Rainier on February 28, 2023, Mount Rainier became a wholly owned subsidiary of the Company, and the Company's shares closed at $4.99 per share. On March 1, 2023, the combined Company's securities began trading on NASDAQ, with a first post-merger closing stock price of $1.59 per share. After a series of disclosures, on July 5, 2023, the price of HUB's stock closed at $0.3918 per share – a 75.26% decline from its initial closing price.
The complaint alleges that the Offering Documents and defendants made false and/or misleading statements and/or failed to disclose that: (i) PIPE financing in connection with the merger was not committed; (ii) HUB would not be led by Legacy Hub’s then-current management team, including defendant Moshe; (iii) the Company had downplayed the full scope and severity of deficiencies in its compliance controls and procedures, including its disclosure controls and procedures and internal controls over financial reporting; (iv) the Company overstated its remediation of, and/or ability to remediate, the foregoing deficiencies; (v) accordingly, the Company had hundreds of thousands of dollars of unexplained expenses incurred, and/or funds misappropriated or otherwise fraudulently obtained, by a senior officer of the Company; (vi) the foregoing increased the risk that the Company would be unable to timely file one or more of its periodic financial reports with the SEC, as required by the NASDAQ’s listing rules; (vii) as a result, the Company was also at an increased risk of being delisted from the NASDAQ;
What Now: Similarly situated shareholders may be eligible to participate in the class action against HUB Cyber Security Ltd. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 4, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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